FedEx package insurance – FedEx is a popular carrier that delivers an average of 14 million parcels to different parts of the world every day. The carrier offers insurance to deal with any situation, including theft, loss or damage. But how much does it cover and what is the cost? Therefore, it is very important to understand the pros and cons of FedEx insurance, which will help you determine what role it plays in your business.
The first $ 100 of insurance costs nothing. But if the cost of the package is higher, you can purchase additional insurance to cover losses. It is important to buy the right amount of insurance. The Declared Value is indicated for this purpose.
What are the changes on FedEx package insurance?
According to the company’s employee newsletter, FedEx does not increase franchises or maximum costs for current medical, dental and ophthalmic plans for 2021. However, contributions to salaries for medical, dental and visual benefits will increase by the same amount as in 2020.
The monthly contribution increase will be $ 2 for employee-only insurance. For employee and child insurance, the increase is $ 12. For employee and family insurance, the increase is $ 18. This applies to all FedEx operating companies except the FedEx office in Cigna and UnitedHealthcare.
How does FedEx package insurance work?
FedEx handles insurance differently than you might expect. It does not apply to insurance at all, but limits its liability to $ 100 for damaged or lost shipment. For shipments of $ 100 or less, you simply declare the cost and do not charge any additional fees. Although FedEx is not yet insurance, FedEx will increase its liability for valuable shipments through a commission-based concept called a declared value obligation.
Responsibility for the declared value of FedEx arises only if the parcels you send were packed by FedEx team members at FedEx. You cannot obtain FedEx insurance for packages that you have packaged and shipped yourself, through FedEx or otherwise.
If you plan to send packages with valuable content through FedEx, make sure they are packaged and delivered to FedEx. Failure to do so may result in loss of the right to sue.
How can I insure FedEx shipments?
- Log in to your FedEx account and click “Submit”.
- Enter all the information about delivery in the right places; do not forget to add the amount in dollars in the field “Declared cost”. This will insure your item for an amount with proof of value. (You cannot claim that the paper letter costs $ 3,000.) Click “Submit” in the fifth field to view the order.
- View the order, address and cost of insurance. The cost of insurance is $ 2.10 for items worth $ 100-300, and any amount worth more than $ 300 is charged at $ 0.070 per $ 100. At this point, FedEx will check the address and provide you with any errors or an incomplete address. If you decide not to receive insurance, click the “Previous” button and delete all text in the “Declared cost” field. Click “Submit” when all information is verified.
- Print the shipping label and attach it to the package using pre-purchased FedEx labels or carefully affixing the printed label to the box or envelope. Make sure the label is completely sealed with clear tape to make it waterproof.
- Set the time to receive the parcel or send the package at the nearest FedEx delivery point. If you plan to transport, an additional fee will be charged. To save money if you live in an apartment complex, ask management at what time of day FedEx arrives and whether you can leave the parcel to receive in the office. If you choose to leave, the addresses are listed on the FedEx website.
How can I file FedEx package insurance claim?
If you purchase FedEx package insurance and your parcel is indeed missing or damaged, you must take action to file a claim.
- The claim must be submitted online, by e-mail or fax to the FedEx Claims Department. If you choose to file a claim online, you can receive an update about your claim via email. If you file an international claim, you must do so by mail or fax.
- After you file a claim, you must call FedEx Customer Service to obtain the case number for your claim and complete a hard copy of the claim form.
- Supporting documents may be required with the claim. Therefore, it is advisable to keep all your receipts from any FedEx transaction in case you need them in the future.
- If you are applying to FedEx for shipping damage insurance, you must keep the box, packaging, and contents handy. They may be reviewed by the FedEx Claims Department to confirm your claim.
- You must file a claim within the valid window. Any claims for damage or loss of a FedEx Express parcel in the U.S. must be made to FedEx within 60 days of shipment. For FedEx Express international packages, claims must be filed within 21 days of departure.
- FedEx Ground claims for lost or damaged parcels must be filed within nine months of the delivery date, although a lost or missing parcel must be reported within 60 days of the delivery date.
- Claims made outside these time periods will not be considered. Most claims are resolved within a week of submission.
- If FedEx approves your claim for lost or damaged packaging, you will be reimbursed for the amount declared. Any fees you pay for using the declared value feature will also be refunded. Shipping costs may also be reimbursed.
What are the changes on FedEx package insurance?
- Many changes have been made to FedEx shipping insurance rates. Previous insurance rates that FedEx charges shippers no longer apply.
- Starting in January 2022, FedEx will charge a default fee of 6% on FedEx Express and FedEx Ground customers in the United States who do not pay the invoice according to the terms of payment.
- From January 4, 2022, tariffs for FedEx Express, FedEx Ground, FedEx Home Delivery, FedEx SmartPost and FedEx Freight will increase. Surcharges and shipping charges will change, which may apply to your shipment and affect the total cost of delivery. Click here to view changes to the surcharge.
- From January 18, 2022, there will be changes on how the additional processing fee for FedEx Express and FedEx Ground is charged.
- FedEx Freight will introduce an additional service area fee that applies to certain shipments.
- Some locations in the United States will be assessed as an international fee outside the delivery area or an international fee outside the self-pickup area for FedEx International Express Freight® services. Click here for more information.
- From February 1, 2022; the way fuel is accessed will change for FedEx Express Freight shipments to the United States. Click here for more information.
- From January 4, 2022, fees for FedEx Express packages and standard rates for exports to the United States, the United States, and imports to the United States will be increased by an average of 4.9%. The 4.9% increase will also affect the standard FedEx Ground and FedEx Home Delivery rates. Click here to download rates.
- FedEx SmartPost, FedEx Ground Multiweight and FedEx International Premium tariffs will increase. The minimum tariffs for FedEx Express services will also be increased.
- The estimated service prices for FedEx One Rate will be changed.
- From January 4, 2022, FedEx freight rates will increase by an average of 5.9% applicable to FXF 1000, FXF 501, offshore (including FXF 300, FXF 303, FXF 352 and FXF 370 series) and commodity rates. See changes to additional and additional service fees. On average, FXF PZONE and FXF EZONE rates will increase by 4.9%.
- FedEx freight rates will also increase at FXFC 1100 (inland Canada), FXFM DD (door-to-door Mexico) and FXFM IMS (intra-Mexico transportation).
- FedEx Freight box rates will not increase.