FedEx offers several services that may be used to ship packages. These include Express, Priority, and standard shipping. Depending on your needs and the type of shipment you’re making, you can choose the right service for your package.
In addition to these services, you can also add insurance to a FedEx shipment. Insurance is an optional service that can be purchased at any point along the shipping process. If you’re wondering how to add insurance to a FedEx shipment, read on for more details.
How to Add Insurance to a FedEx Shipment
If you’re planning on shipping a valuable item, it’s a good idea to add insurance to your shipment. Insurance protects you in case the item becomes damaged or is lost while in transit. If you’re adding insurance to a FedEx shipment, you’ll need to decide on the type of insurance you’d like to add. You have a couple of options:
- Option 1: FedEx insurance (Exchange, Despatch, or Proof of Delivery)
- Option 2: Third-party insurance
Types of insurance you can add to a FedEx shipment
FedEx insurance (Exchange, Despatch, or Proof of Delivery) Exchange
Exchange insurance covers any losses or damage that occur while your shipment is in transit. If your shipment is damaged, you get a new one delivered to you. If your shipment is lost, you receive a replacement item or the monetary value of the item. Exchange coverage is available for Express, Priority, and Standard shipments. Exchange insurance costs $1.75 per $100 of the insured value.
Despatch insurance covers any losses incurred while your shipment is in transit. If your shipment is damaged or lost, you receive a substitute item or the monetary value of the item. Despatch coverage is available for Express, Priority, and Standard shipments. Despatch insurance costs $1.75 per $100 of the insured value.
Proof of Delivery
Proof of delivery insurance covers any losses that occur once your shipment has reached its destination. If your shipment is damaged or lost, you receive a replacement item or the monetary value of the item. If your shipment is misdelivered or undelivered, you receive a refund for the full cost of the shipment. Proof of delivery coverage is available for Express and Standard shipments. Proof of delivery insurance costs $1.75 per $100 of the insured value.
Third-party insurance is insurance provided by an outside company. This type of insurance allows you to select the amount of coverage you want and pay a one-time fee.
How much does adding insurance to a FedEx shipment cost?
The insurance coverage you choose will determine how much you pay. The type of insurance you add to your FedEx shipment will determine the amount of coverage and the cost. If you decide to add insurance to your shipment, you should know that the insurance will cost you more than the base rate if you choose to include coverage for misdelivery or nondelivery (undelivered insurance).
Coverage for misdelivery or nondelivery is optional and will increase the cost of your insurance. If you want to add insurance to a FedEx shipment, the good news is that you can purchase coverage at any point in the shipping process. You can purchase insurance when you create a shipment, when you print a shipping label, or even after the package has been dropped off at the FedEx location.
Is there anything not covered by the insurance you can add to a FedEx shipment?
All types of insurance offered by FedEx provide coverage for the same types of events. However, some events won’t be covered by any type of insurance. There are some situations where no insurance company would cover a loss or damage.
- If the package you are shipping contains prohibited items (explosives, certain animals, etc.), no insurance company will cover any issues that arise from the package.
- Shipping illegal goods, you are taking a huge risk by insuring the package. In some cases, it’s better just to avoid the risk and saving the money by not insuring the package.
- If you have maliciously misrepresented the contents of the package, insurance companies won’t cover any losses.
If you are shipping a valuable item and want to add insurance, make sure it’s something you could actually afford to replace if it’s lost or damaged.
Final words: Is insuring your package with FedEx worth it?
The short answer is maybe. The price of insuring a shipment depends on the type of package you’re shipping and the amount of coverage you want. The cost of insurance is tied to the value of the package you are shipping.
If you’re shipping something worth $1000, you’ll pay more for insurance than if you were shipping something worth $10. If you’re shipping a valuable item, it’s worth considering adding insurance. You may be able to save money by choosing a lower coverage amount.
For example, you may be able to save money by adding $500 of coverage instead of $1000. When you ship a FedEx package, you have the option to add insurance. Depending on the type of shipment you’re making, you may want to consider opting for insurance. For valuable items, it may be worth it to add insurance to your package.