Shipping Insurance: Terms & Conditions, Policy
It’s important that your eCommerce site thoroughly explains your liability in the case of a lost, damaged or stolen package; you must provide this information as part of your legal terms and conditions, but customers also appreciate seeing it in a more user-friendly format in a help, FAQs or policies section.
Insurance in your shipping policy
In either case, you should work with your legal counsel to ensure you’re using the correct language. Here are some topics related to product liability you should be sure to cover:
- Covered vs. uncovered items or product categories
- Covered vs. uncovered destinations
- Included vs. optional coverage (with any appropriate cut-o values)
- Variations by shipping carrier and method if you oer more than one of either
- Rules for coverage of multi-box shipments
- Coverage limits
- The claims process and proof of loss requirements
- Any situations for which insurance coverage is not required for you to cover the cost of a loss
If you allow customers to select supplemental insurance as an option during checkout, and if your eCommerce platform supports it, you can consider automating some checks of the order’s insurability—e.g., flagging uninsurable items, values or destinations if the customer has added optional insurance.
This article is an excerpt from The eCommerce Seller’s Guide to Shipping Insurance