Think you're well insured? Yet every day, e-merchants lose money, time and customers because of what they thought was protective parcel insurance. The reason is not bad luck, but a deliberately complex system.
Parcel insurance offered by carriers is a labyrinth of hidden conditions, fine print exclusions and slow processes designed to protect them, not compensate you quickly. On average, a refund takes 77 days. During this time, your cash flow is tied up, your customer is unhappy, and your margin evaporates.
This article outlines the 5 most common mistakes and gives you the keys to getting out of this labyrinth. You can also find our encyclopedia on transport insurance, with an analysis of ad valorem offers from carriers, CMS and logistics solutions.
#1 - Ignore Lowercase Exclusions
The first mistake is to believe that "insurance" means "all risk". Every Carrier contract has a long list of products and situations that are not covered.
#2 - Underestimating Actual Cost (Deductible & Minimum Premiums)
The second mistake is to look only at the percentage displayed. The true cost of insurance is often masked by minimum premiums and deductibles that directly attack your profitability, especially on low- and medium-value parcels.
#3 - Endure endless claims delays
The third mistake is to accept the 77-day average lead time as inevitable. Every day you wait is a cost to your business: frozen cash flow, the need to reship at your own expense, and time wasted by your customer service department.
#4 - Choose a hedge based on purchase value, not sale value
A subtle but costly mistake is to take out insurance that reimburses you for the cost price of your product, not its selling price. In the event of loss, you don't just lose the product, you also lose your margin, customer acquisition costs and shipping costs. True Ad Valorem insurance should cover the full transaction value.
#5 - Sacrificing Customer Satisfaction on the Altar of the False Economy
The final mistake is to think that ad valorem insurance is just a cost line. It's a pillar of the customer experience. After a delivery incident, 66% of customers will not return. Handling a dispute quickly and professionally by reshipping a new product immediately (because you're sure to get your money back quickly) turns an unhappy customer into an ambassador for your brand.
The Claisy Alternative: Simplicity meets Performance
Faced with the complexity of carrier insurance and the limitations of Limits, Claisy offers a revolutionary approach to high-value parcel insurance.
The Synthesis: Your Anti-Error Checklist
To help you visualize the solution, here's a table summarizing the 5 mistakes and how to counter them.
Get out of the Carrier Insurance Labyrinth
Stop being burdened by complexity that weighs on your margins and reputation. Shipping insurance shouldn't be an unpredictable cost center, but a strategic tool for protecting your business and building customer loyalty. Whether with ChronopostDHL, UPS, FedEx, etc., you need to be vigilant about the terms and conditions of your transport insurance cover.
To find out more about ad valorem carrier insurance :