Many e-tailers are reluctant to take out parcel insurance. Some even see it as a financial loss, doubting its real profitability.
Yet the figures speak for themselves:
- According to Penn Elcom’s Global Parcel Theft Report 2022, nearly one in ten people worldwide reported having lost or stolen at least one parcel over a 12-month period.
- According to FEVAD, 31% of e-commerce disputes are related to delivery (undelivered or partially delivered parcels), and 25% to problems of non-conformity or damaged products.
- Finally, according to IPSOS, 85% of Internet users will not return to a website where the delivery experience is deemed “poor”.
This raises a number of questions: who is responsible for lost, stolen or damaged parcels: the carrier or the merchant? When is it essential to insure my parcels? Which insurance is most advantageous?
What is a transport dispute?
According to the French Transport Code, the carrier and/or freight forwarder is responsible for the goods throughout the transport process, from the shipper’s departure to the consignee’s receipt. The carrier is automatically liable for theft, damage, destruction or loss.
However, he may be exempted from this liability in certain cases, notably when the shipper’s fault is confirmed. For example, when the deterioration of goods is due to inappropriate packaging.
What is parcel insurance?
With parcel insurance, you can ensure that your shipments are protected throughout the entire process, from dispatch to delivery.
As a result, e-tailers have two options:
- The carrier’s legal liability: lump-sum compensation for the carrier
This parcel insurance is a partial cover guaranteeing an amount reimbursed by the carrier according to the weight of the parcel (limited to around ten euros per kilogram).
This indemnity is then sufficient to cover small-value parcels, but not high-value ones. Indeed, a parcel can be small, light and of high value, such as a smartphone. However, a lost, stolen or damaged smartphone will be compensated on the basis of its weight, not its value. This represents a substantial loss for the sender.
There are many types of carrier insurance available for all types of parcels and deliveries. Here is a brief overview of the most important ones.
It is therefore possible to supplement your insurance with a complementary policy.
- Ad Valorem parcel insurance
Ad Valorem parcel insurance is a complementary and therefore optional form of insurance, which guarantees 100% protection in the event of a dispute.
Ad Valorem promises:
- compensation up to the actual declared value of the asset
- protection at the purchase or sale value of the merchandise
- coverage for property damage, loss and theft.
Ad Valorem parcel insurance is recommended for valuable shipments.
It does not cover immaterial damage.
- Ad Valorem parcel insurance – Secursus
Shippingbo’s partner Secursus offers an insurance service to protect your parcels against breakage, theft and loss during shipment. It’s Ad Valorem parcel insurance, efficient and cost-effective. Their 100% online service guarantees protection for your shipments, up to €100,000 declared value per parcel. What’s more, claims management is centralized, making it as easy as possible to reimburse consumers.
Secursus offers a reliable service at fixed, affordable rates, up to 3 times less expensive than carriers’ supplementary insurance. Parcel insurance covers all types of goods, whatever the destination or type of delivery, and promises reimbursement at sale value in the event of loss, theft or breakage. Secursus adapts to the specific needs of each professional, offering a flexible and inclusive service.
Shippingbo then automates Secursus insurance through its interface, optimizing costs for merchants.
Why insure your parcels?
In 2020, over 1.5 billion parcels were shipped in France, that’s over 5 million parcels a day. Statistically, thousands of parcels are lost or damaged every year. In fact, Colissimo has estimated its errors at 20,000 per day, or 2% of losses. So it makes sense to insure your parcels, but why?
- Compensation for loss, theft or damage to goods
As an e-tailer, when a parcel shipment fails, you’re responsible for losses due to delivery costs and the value of the parcel, but that’s not all! You also have to take into account the replacement of the goods and the new delivery costs.
Insurance thus provides economic protection against poor performance of the transport contract.
- Refund of order value: Ad Valorem
If you take out additional Ad Valorem parcel insurance, your losses or margins are covered. In the event of loss, theft or damage to a high-value parcel, the full value of the order is reimbursed.
This allows e-tailers to send a replacement parcel without incurring additional costs. Which brings us to the third point.
- Security for you and your customers
Parcel insurance helps reassure consumers and limit their frustrations. Rapid reimbursement allows us to react quickly and improve the customer experience. Indeed, in the eyes of the customer, the e-tailer is entirely responsible in the event of damage or loss. As a result, the buyer runs the risk of making a complaint or leaving a negative review of your company.
When should you insure your parcels?
Insuring all your parcels is not necessarily necessary. In some cases, it is preferable to do so, especially when :
- High-value parcels
When the value of the parcel exceeds €50, it is advisable to take out parcel insurance, preferably complementary. In this way, e-retailers who suffer a transport dispute will be reimbursed up to the value of the parcel.
- International shipments
Shipping abroad inevitably means more people involved in the delivery process. This means greater risks and higher delivery costs. Insuring international parcels means limiting loss of money.
- Depending on the high season
During high-season periods, such as school vacations, sales, Black Friday, Christmas… the rate of parcels sent is substantial. Carriers cope with this considerable increase, and can handle up to 300% more parcels than the rest of the year. However, delivery times remain the same. Carriers must therefore redouble their efforts to meet them, increasing the chances of damage, loss or error.
- Non-replaceable parcels
For unique, expensive or rare products that can’t be replaced quickly, parcel insurance can help limit your costs and your buyer’s frustration.
Insurance guarantees both e-tailers and consumers a rapid refund and a satisfying customer experience.
How do I choose my parcel insurance?
As mentioned above, you have several options. As an e-tailer, you can insure your parcels directly with the carrier. Insurance conditions are then specific to each carrier. Here are a few examples of carrier parcel insurance and their prices:
- Chronopost parcel insurance
The Chronopost offer is based on an express delivery service. It also offers Ad Valorem parcel insurance, covering material damage and loss of transported goods, according to the declared value of the parcel, regardless of the destination.
E-merchants can cover their goods for up to €5,000 per parcel, even in cases of force majeure.
| Max. weight | Rate | |
| Chrono Sameday | 30 kg | 23 €/kg |
| Chrono 10 | 30 kg | 33 €/kg |
| Chrono Express | 30 kg | 33 €/kg |
| Chrono Relais | 20 kg | 23 €/kg |
- Colissimo parcel insurance
Colissimo International offers an extensive, yet comprehensive service to the four corners of the globe. Here’s an overview of prices:
| Max. weight | Rate | |
| Colissimo without signature | 30 kg | 23 €/kg |
| Colissimo with signature | 30 kg | 33 €/kg |
| Colissimo at collection points | 20 kg | 23 €/kg |
| Colissimo international | 30 kg | 33 €/kg |
- Mondial Relay parcel insurance
Mondial Relay also offers parcel insurance:
| Max. weight | Rate | |
| At home | 30 kg | From €50 to €500 |
| Relay points | 50 kg | From €50 to €500 |
| Drive | 150 kg | From €50 to €500 |
| Europe relay points | 50 kg | From €50 to €500 |
Here are a few tips to help you protect yourself:
Parcel insurance offers many advantages. Certain practices can also be adopted to limit risks:
- Pay particular attention to packaging (solid, stable packaging).
- Pay particular attention to the postal address (legible, complete and correct).
- Communicate with your buyers about your delivery terms and conditions.
Shippingbo explains all about parcel insurance!
As you can imagine, the delivery of goods can be fraught with difficulties, depending on the type of parcel, the time of year and the destination. Various complications can arise, including theft, loss or damage to a shipment, and consequently loss of money, but above all, poor customer satisfaction for the e-tailer.
In some cases, you need to protect your goods and your portfolio, to keep your customers satisfied.
We tell you where to start in this comprehensive webinar:
