Any good business owner knows that insurance is an imperative part of their operational toolset.
What many business owners seem to neglect, however, is shipping insurance.
Even when you ship with the industry’s most reputable carriers, occasional problems may arise unexpectedly during the shipping journey.
Without proper preparations, this can have a negative effect on several aspects of your business, including your profit margins.
Still, the question of whether shipping insurance is a necessary expense is one asked all too often.
Let’s explore some of the reasons why shipping insurance is a worthwhile investment for any business.
Source: Maximize Market Research
1. Shipment Security
The shipping process is one full of variables and uncertainties, and despite centuries of progress within the industry, it is not impossible for goods to be lost, damaged, or even stolen while in transit.
While most goods can be covered by insurance offered directly though a carrier, in some instances, such as with particularly high-value goods, coverage through the carrier may not be available.
Due to this, additional carrier insurance or third-party insurance providers are often used to provide additional security when shipping high-value items.
Source: Startup Talky
2. Confidence in Business Growth
Expanding your business overseas is a huge step for any small business owner, but the prospect of handling lost or damaged international shipments could cause some to stand idle for fear of hurting their brand and profit margins.
The good news is that many shipping insurance providers offer protection that covers domestic, cross-border, and international shipments, giving you the peace of mind to confidently expand your business outside your own borders.
With lengthy transit times and, in many cases, multiple parties handling the shipment, insurance for international shipments should be top of mind.
3. Company Reputation
Regardless of whether you are shipping pallets B2B, offering white glove delivery on high-ticket items, or shipping parcels to customers from an eCommerce storefront, the condition in which your goods arrive at their destination is a reflection of your business.
Further, the way in which you handle shipping mishaps is a direct extension of that.
Investing in shipping insurance can be a way of both directly and indirectly strengthening the reputation of your brand to everyone with whom you conduct business.
Not only will using shipping insurance provide ongoing peace of mind to both you and your clients, but in the event of unforeseen loss or damage of goods you can confidently resolve the issue with your clients without fear of your overhead being negatively affected.
4. Peace of Mind
When all is said and done, the key takeaway is that using shipping insurance gives business owners peace of mind and a competitive advantage.
Even with the most scrutinous checks and balances in place, it is simply impossible to guarantee that every shipment will make its journey free from incident, and these incidents can easily snowball into much larger problems for your business.
Knowing that your shipments are protected from unforeseen forces and events means that you can spend less time and energy worrying about how to manage these events when they happen and free up time to focus on other areas of your business.
Ensure Your Shipping is World-Class with Freightcom
Shipping insurance is a wonderful way to keep your peace of mind intact while your shipments are in transit.
But for peace of mind during every part of the shipping experience, Freightcom is there for you!
We partner with North America’s leading LTL and parcel carriers to offer you better rates on LTL and parcel shipping, in real time, with zero upfront and monthly fees!
Contact one of our shipping experts today and let Freightcom help you give your customers the experience they deserve!
Written by Brandon Draga
Brandon Draga is a full-time content writer at Freightcom, the leading shipping solution for businesses in Canada. When Brandon is not writing content to help businesses with their shipping needs, he can be found at local skate parks or writing fantasy novels.