You’ve just packed a package. Whether it contains a product from your e-commerce store, a valuable gift, or a crucial document, one question hangs in the air: “What if it never arrives?” In the world of shipping, uncertainty is the norm. But resignation shouldn’t be.
The biggest financial mistake shippers make is relying on the “basic” insurance included by carriers (regardless of your industry). It’s an illusory safety net. The only real protection for your goods isad valorem insurance. Still not convinced? Here are 7 compelling reasons that will change the way you think about shipment security.
Carriers are liable for between 23 and 33 € per kilogram, which means that for a lightweight but high-value package, the compensation may be significantly less than the package's actual value
What Is Ad Valorem Insurance? (And Why It's NOT an Option)
Before we dive into the reasons, let's make sure we understand what we're talking about:
- Standard insurance (Carrier): It compensates you based on weight. A paltry flat rate (often ~€23/kg) that takes absolutely no account of what’s inside your box
- Ad Valorem Insurance: It compensates you “according to value” (which is what “ad valorem” means in Latin). You declare the actual value of your goods, and in the event of a claim, you are reimbursed based on that value
That's the difference between getting €5 for your lost smartphone and getting its actual purchase price.
Basic Insurance vs. Ad Valorem: A Head-to-Head Comparison
Which Ad Valorem Insurance Should You Choose Based on Your Profile?
Check out our interactive insurance comparison tool for carriers here
- Are you an individual who occasionally ships a valuable item? The Ad Valorem option on your Carrier may be sufficient, but compare its cost with that of a specialized insurer
- Are you a small business? A specialized insurer is the only viable solution. It protects your profit margin, your time, and your reputation. Automation via a CMS connector offers a huge boost in productivity when managing your transportation disputes
- Do you ship luxury items, high-tech goods, or used items? Carriers often exclude these types of goods. Only a specialized insurer like Claisy will offer you adequate coverage (as it does for Dwice, the leading vinyl resale platform) to insure your packages
- Are you a marketplace? The customer experience is essential, and so is protecting your sellers: discover how Claisy can revolutionize how you protect sellers and buyers— digitize your entire process, from Dispute to transportation.
Practical Checklist: Best Practices for Insured Shippers
- Before shipping: Purchase insurance before shipping. Always keep the purchase receipt or proof of your item's value.
- Packaging: Use plain, sturdy packaging. Never indicate the nature or value of the contents on the package.
- In the event of a claim: Damaged package, lost package, lost package contents: Take photos (if damaged or stolen), contact your insurer immediately, and keep all documentation (proof of shipment, email correspondence, etc.)
In conclusion, choosing ad valorem insurance doesn't mean "spending more." It means deciding to invest in the safety of your goods, your peace of mind, and the satisfaction of your recipients.