nShift's insurance differs from that of many carriers (Chronopost, GLS, UPS, ....). It is not managed in-house, but via a technological partnership with experts: broker Cover Genius (via its XCover brand) and insurer Accelerant.
This model has a major strategic advantage: claims management is independent of the final carrier's decision. Cover Genius makes the final decision on the legitimacy of lost, damaged or stolen packages, based on the terms of the contract. This autonomy enables nShift to promise rapid compensation, an undeniable strength on the market. However, this "all-in-one", independent solution is less than practical in terms of offering catalogs and customer retention.
nShift insurance rates, Limits and hidden costs
nShift's pricing structure looks simple on the surface, but it hides fixed costs that can make insuring low-value packages (extremely) expensive.
Official Price List
The price of the insurance is a percentage of the declared value, which varies according to the destination:
- Domestic shipments : 0.7% of declared value
- Shipments within the EU: 1.0% of declared value
- Shipments outside the EU: 1.1% of declared value
Added to this are taxes on transport insurance, which vary from country to country (e.g. 12% in the UK).
Hidden Costs: Minimum Premium and Franchise
This is where the model shows its limits for many e-tailers, and it's a shame because the offer seemed extremely attractive.
- Minimum premium: There is a minimum premium of €8 / £8 per shipment. In concrete terms, even if you insure a €100 parcel for a domestic shipment (calculated premium of €0.70), you'll still pay €8.
- Deductible: A deductible is applied to each claim. The amount is not always clearly communicated, but it does exist, which means that you will never be reimbursed for 100% of your loss.
The Coverage Limit : a €20,000 limit
The maximum amount insurable via the nShift solution is €20,000 per shipment. Although comfortable for many shipments, this Limit can be limiting for professionals shipping very high-value goods.
Exclusions and the claims process: an external portal
- Main exclusions: The list of exclusions is detailed in XCover's terms and conditions and includes classic categories such as live animals, human remains, bullion and currency, as well as more common goods such as second-hand cell phones, second-hand laptops and plants and flowers.
- Second-hand goods: These are covered, provided that an invoice or proof of market value can be provided, and that they are not included in the exclusion list.
- The Claims Process: The experience is modern but outsourced. The claim is not made in the nShift interface, but on the dedicated Cover Genius portal. Although this portal makes it easy to complete the file, it takes the user out of their usual work environment. nShift's marketing promise is that 95% of eligible claims will be reimbursed in less than 3 days, a performance that depends on the perfection of the claim submitted.
NB: it is always advisable to check exclusions regularly or ask your account manager if you have any doubts.
Strategic comparison: nShift vs. Claisy
While nShift and Claisy share the same philosophy of speed and independence, their business models and coverage differ. The comparison is no longer based on speed, but essentially on thescope of protection against stolen, lost or damaged parcels.
Case studies: what impact on your margins?
Let's look at two concrete scenarios to visualize the impact of these differences.
Conclusion: nShift, a fast but costly and limited insurance solution
The parcel insurance offered by nShift via Cover Genius is a modern, fast solution, which has the great merit of freeing itself from carrier delays. It's a coherent all-in-one option for users of their ecosystem who prefer simple integration.
However, for a professional concerned about his profitability and the protection of all his assets, its weaknesses are major:
- A very high real cost for low and medium-value parcels, due to the minimum premium of €8
- A deductible that guarantees a financial loss on each claim
- A €20,000Limit that excludes very high-value shipments
- Exclusions on key products such as used phones and computers
Faced with this model, an expert solution like Claisy positions itself as the alternative for financial performance to cover all your shipments. By offering actual rate pricing with no abusive minimum premium, no deductible on value, Limits up to €100,000 and more, and broader coverage, Claisy offers protection of the same speed, but more cost-effective and powerful.