Package Insurance protects Sellers from damaged or lost  shipments caused by carriers while in transit. If packages are lost or damaged, carriers and 3rd party insurers will reimburse you for damages up to the purchased insurance amount. 

By default, all Seller accounts purchase insurance directly from carriers. If you're interested in adding additional insurance through Shipsurance (at up to 85% cheaper than Carrier insurance), please contact Cahoot Support. 

Price Comparison Table:

Carrier	Service	Carrier Rate	Our Rate per $100	Savings
USPS	Domestic	$2.95	$0.75	75%
	International	$1.30	$0.99	24%
FedEx	Domestic	$3.15	$0.50	85%
	International	$1.05	$0.75	29%
UPS	Domestic	$3.45	$0.50	84%
	International	$3.45	$0.75	78%

*Carrier rates are for USPS Insured mail and additional Declared Value services after their free coverage.

 

What is Shipsurance?

Shipsurance (an Assurant Company) is a leader in cargo insurance, and their shipping claims process is simple and quick.

Cargo insurance costs approximately $0.50 per $100.00 of coverage, per parcel, for domestic packages and $0.75 per $100.00 for international packages. 

 

What are the differences between Declared Value and Cargo insurance?

The insurance provided by carriers is Declared value, while Shipsurance provides Cargo insurance. 

While there are several differences between the two, the main differences are:

1. With declared value insurance, the Seller must prove the carrier's negligence directly resulted in the loss or damage to cargo. Cargo insurance pays damages regardless if the loss or damage was due to carrier negligence. 

2. Declared value insurance only covers damages or loss in transit; once a package is marked "Delivered" the insurance coverage is ended. Cargo insurance still covers "Delivered" packages. 

 

What are the true costs to using Shipsurance over free carrier insurance?

If we look at the free insurance provided by carriers, it seems like a great option for Sellers because it's free up to the coverage amount provided. Even with the discounted shipping insurance coverage offered by Shipsurance, you can’t compete with free coverage! Or can you?

Let’s dive into this so-called “free” coverage. At first glance, saving $0.75 (the current Shipsurance rate through Cahoot) for a sub-$100 package is a no-brainer. However, what about if something happens to the shipment? What if it gets lost in transit? Damaged? What’s the true cost of saving that $0.75?

Here’s a list of issues we gathered from Sellers that have filed a claim for the “free” coverage with USPS:

• Claims scanned as “Delivered” are automatically denied because they have a delivery scan.
• The recipient has to take the item to a local post office if it is damaged and they are often not willing to participate.
• Reaching a human on the telephone can be rather difficult when you want to discuss a claim. All systems are automated and return phone calls are rare.
• Claims that are paid may take up to six months to receive. (Remember, we are talking about claims valued at sub-$100 that are taking this long.)

So, while this “free” coverage didn’t cost you anything monetarily, it becomes rather expensive when your precious time is spent following up on it. When the claim is denied, it now becomes an expense. Time is money, after all.

Taking advantage of the Shipsurance coverage built directly into the Cahoot software is a cost effective way to manage your shipping risk and avoid some of the pitfalls mentioned above. 

 

Carrier-provided package insurance

Shipping carriers offer insurance for any package lost, stolen, or damaged, in transit. For many carrier services the first $100 of package value is covered automatically and doesn't cost the Seller anything. Additional package insurance past this amount can be purchased to cover any potential losses but this does increase shipping label costs.

Note that not every carrier and method offer the same amount of free insurance. Here's a table covering all the major carriers and their services, showing how much insurance is provided by each carrier at no cost to the Seller:

 

Carrier	Carrier Service	Shipping Carrier Liability
DHL	International	$0.00
DHL Global Mail	Domestic	$0.00
DHL Global Mail	International	$0.00
FedEx	Domestic	$100.00
FedEx	International	$100.00
FedEx FIMS	International	$0.00
FedEx Smart Post	Domestic	$0.00
UPS	Domestic	$100.00
UPS	International	$100.00
UPS Mail Innovations	Domestic	$0.00
UPS Mail Innovations	International	$0.00
USPS	Domestic – First Class	$0.00
USPS	Domestic – Traceable	$0.00
USPS	Domestic – Priority Express Mail	$100.00
USPS	International – First Class Mail	$0.00
USPS	International - Priority Mail	$0.00
USPS	International – Priority Express Mail	$200.00

 

For example, this means that USPS Priority Mail offers no free carrier insurance, but USPS Priority Express offers $100 free insurance domestically, and $200 internationally.

You can see the type of insurance your account is configured to use by reviewing any product's Package Manager Data in the Cahoot Software, or from the Create Label screen.

 

Configuring insurance type in Cahoot

Cahoot supports 3 options for insurance:

1. Only purchase insurance through shipping carriers
2. Use default insurance through carriers, any additional insurance through Shipsurance
3. Purchase all insurance through Shipsurance, ignoring carrier insurance

This is configured at the account-level and applies to all orders. 

Normally, Shipsurance provides additional insurance beyond what is provided from the carrier (if any), option #2 above. For example, if you insure a FedEx Home Delivery package for $300, the first $100 will be covered by the carrier, and the remaining $200 covered by Shipsurance. 

If you have all insurance going through Shipsurance instead, the full $300 will be covered by Shipsurance, option #3 above.

 

Configuring insurance for SKUs and labels in Cahoot

Insurance is configured as part of the SKU's Package Manager Data, where you can specify each SKU's default insurance.

 

 

The Package Manager Data insurance will be automatically summed for any orders that contain this SKU. If there are multiple SKUs or multiple qty, then the insurance will be totaled for the final insurance cost of the label, but you can also manually specify insurance for any shipping label at the Create Label step:

 

 

If the Carrier and Service Type selected provide default insurance, and your account is configured to use default carrier insurance in any capacity, you'll see the carrier provided insurance here (Ex. FedEx 2nd Day Air, up to $100 carrier insurance provided):

 

 

If the Carrier and Service Type selected do NOT provide insurance coverage, you'll see this message instead (Ex. UPS Priority Mail, no carrier insurance provided):

 

Once the shipping label is created, you can see the insurance details on the Order Details page.

 

 

As well as on any Order Status page:

 

 

How to submit an insurance claim

Insurance claims are done for carrier insurance directly on their websites;

• FedEx
• UPS
• USPS

 

You'll need to complete this first if you want to also process a Shipsurance claim.

In order to process a Shipsurance claim, simply click on the link on the Order Details page to start the claim process.

 

 

The form will pre-populate the fields based on the Order Details, but some fields need to be filled out with the specifics of the claim.

 

 

Please ensure all fields are properly filled in, including the carrier claim number from the direct carrier claim submission.

 

Reminder: Carrier insurance claims need to be initiated first, if you had package insurance from both the carrier and Shipsurance.

 

Once you've submitted your claim, you will receive a confirmation from Shipsurance and further status updates will come from Shipsurance directly.

 

Shipsurance terms and conditions

Shipsurance Terms and Conditions can be found by clicking on the popup link on SKU Package Manager Data as well as from the Create Label page.

 

 

Here is a direct link to Shipsurance Terms and Conditions for your convenience: 

https://www.shipsurance.com/cahoot/terms