Western Bid Parcel Insurance — this is a financial instrument for protecting the seller’s interests, which guarantees full reimbursement of the cost of the goods and shipping expenses in the event of confirmed loss of the shipment by the postal service. The service is provided at the minimum rate — just 1% of the total value of the shipment, which allows exporters to minimize business risks when operating in the US, Europe, and Asia.
As online shopping becomes more popular, so does the risk of losing valuable shipments during delivery. This is where parcel and postal shipment insurance comes in.
You can learn more about the different delivery options at the following links:
– UPS Express
– FedEx Delivery
– Nova Global Delivery
– Nova Poshta International Delivery
– Delivery to Europe from Ukraine via DPD
– Consolidation Plus Delivery
– Consolidation Direct Delivery
– Consolidation Optimum Delivery
– Western Bid Fulfillment Center in the USA
Why is parcel insurance necessary?
No one is insured against unforeseen situations that may arise during the transport of cargo. Loss or theft of parcels are real risks that can turn into significant financial losses for shippers and recipients.
Parcel insurance provides protection and compensation for losses that occurred during the delivery process.
Advantages of shipping insurance
Loss coverage: In the event of loss of the shipment, the insurance company will reimburse the value of the goods or part thereof, which provides the sender and recipient with full confidence in the safekeeping of their property.
Conflict resolution: Parcel insurance helps reduce conflicts between shippers and carriers, as insurers ensure fair consideration and compensation in case of losses, which helps maintain trust in the parcel delivery market.
Enhanced reputation: For online stores and commercial platforms, offering parcel insurance is a sign of care for customers and can significantly boost their reputation, attracting more trust from buyers.
Increased buyer confidence: When customers know that their orders are protected by insurance, they shop more confidently, which contributes to higher sales volumes and increased loyalty.
How much does insurance cost?
Western Bid offers its clients the option to insure parcels for 1% of the total value of the shipment.
The total value of the shipment is:
- the amount of the contents’ declared value as stated by the sender;
- the shipping cost paid by the customer.
For External goods the total value of the shipment is:
- the amount of the contents’ declared value as stated by the sender;
- the shipping cost paid by the customer.
The total value of the shipment does not include amounts that are not specified in the definition of the total value of the shipment. In other words, the total value of the shipment does not include PayPal fees, marketplace fees, the insurance premium, the cost of materials used to manufacture the product, packaging costs, moral damages, and other costs not specified in the definition of the total value of the shipment.
Which parcels can be insured?
In the service system you can insure parcels sent by Consolidation Plus, Consolidation Direct, UPS Express, FedEx, or fulfillment center delivery.
Parcels sent by UPS Express and UPS Ground – can be insured only if the declared value is greater than $ 85. If the declared value is less than or equal to $ 85, regardless of the paid shipping cost, such parcels are automatically insured for free up to the sum of the declared value of the contents plus the paid shipping cost, however the compensation will not exceed $ 85. If the declared value is greater than $ 85 – 1% of the declared value.
Parcels sent by FedEx – can be insured only if the declared value is greater than $ 100. If the declared value is less than or equal to $ 100, regardless of the paid shipping cost, such parcels are automatically insured for free for the amount of the declared value of the contents plus the paid shipping cost, however the compensation will not exceed $ 100. If the declared value is greater than $ 100 – 1% of the declared value.
Parcels sent by Consolidation Direct – can be insured only if the declared value is greater than $ 100. If the declared value is less than or equal to $ 100, regardless of the paid shipping cost, such parcels are automatically insured for free for the amount of the declared value of the contents plus the paid shipping cost. Except for shipments of Mail Innovations and Economy DDU – they are not automatically insured and you can opt for insurance at 1% of the value.
Parcels sent by Consolidation Plus – if the declared value is less than or equal to $ 100, regardless of the paid shipping cost, such parcels are automatically insured for free for the amount of the declared value of the contents plus the paid shipping cost. Except for shipments of Mail Innovations and Economy DDU – they are not automatically insured and you can opt for insurance at 1% of the value.
Details on the types of shipments:
- UPS Mail Innovations – the parcel is not insured by default, but you can opt for insurance – 1% of the declared value.
- UPS Surepost – a shipment up to $ 20 is insured by default; when creating the shipment from the client, a sum of $ 0 is charged in a separate transaction, to show that the insurance is free (the insurance applies only if the shipment has not been handed over to USPS).
- USPS Priority – a shipment up to $ 100 is insured by default; during creation from the client, a sum of $ 0 is charged in a separate transaction, to show that the insurance is free.
- USPS Ground Advantage – a shipment up to $ 100 is insured by default; during creation from the client, a sum of $ 0 is charged in a separate transaction, to show that the insurance is free.
- UPS Ground Saver – a shipment up to $ 20 is insured by default; during creation from the client, a sum of $ 0 is charged in a separate transaction, to show that the insurance is free (the insurance applies only if the shipment has not been handed over to USPS).
- UPS Economy DDU – a shipment is not insured by default, but you can choose insurance – 1% of the declared value. Insurance is available only in countries where it is trackable – Canada, China, Israel, Japan, Singapore and the United Kingdom. In other countries the insurance does not apply.
- 2 Day FedEx – a shipment up to $ 100 is insured by default; during creation from the client, a sum of $ 0 is charged in a separate transaction, to show that the insurance is free.
- FedEx International Connect Plus – a shipment up to $ 100 is insured by default; during creation from the client, a sum of $ 0 is charged in a separate transaction, to show that the insurance is free.
- Fedex International Priority, Fedex International Economy, FedEx Int One rate to Canada – a shipment up to $ 100 is insured by default; during creation from the client, a sum of $ 0 is charged in a separate transaction, to show that the insurance is free
- DHL eCommerce – a shipment up to $ 100 is insured by default; during creation from the client, a sum of $ 0 is charged in a separate transaction, to show that the insurance is free.
DHL eCommerce automatic insurance: what you need to know
When using DHL eCommerce your shipment valued up to $100 is automatically insured by DHL eCommerce.
How the compensation is calculated
In case of claim approval DHL pays the lesser of the two amounts:
- $0.50 per pound (by weight)
- or the actual declared value of the contents of the parcel
Maximum compensation — $100 per shipment.
Key terms for filing claims
- Claims for lost shipments can be filed within 21 days after dispatch, but no later than 90 days.
- Damages can be reported immediately, if they occurred inside the DHL eCommerce sorting center.
- Claims are accepted only from the shipper, not the recipient.
- A valid tracking number is required.
- Western Bid will file the claim itself in case of loss or damage to the shipment. You simply need to inform us about it
Examples of compensation calculation
- Parcel – 204 g, declared value – $20
→ $0.50 × 0.45 lb = $0.23
→ Payout: $0.23, since this is less than the declared value. - Parcel – 340 g, declared value – $80
→ $0.50 × 0.75 lb = $0.38
→ Payout: $0.38
Full insurance from Western Bid
Unlike DHL, we offer insurance that truly covers the full declared value of the shipment in case of loss, not symbolic amounts calculated by weight.
- Insurance amount = declared value of contents
- There are no hidden terms and no automatic inclusion
- Claim submission — through our customer portal, with support at every step
If you want to insure the shipment — simply select the insurance option when creating the shipment.
Parcels sent by Nova Poshta – loss insurance is included in the cost for shipments with an estimated value from 200 UAH up to $799.99 (excluding documents).
Parcels sent via DPD – you can insure your parcel against loss; insurance cost is 1% of the transaction value.
Please note! Quite often carrier services, to open an investigation into the loss of a parcel, require an invoice from the marketplace, as proof of what and at what price it was sold.
In what cases can compensation be obtained?
Compensation is provided only in the event of a parcel loss confirmed by the postal service. Delivery delays, problems at customs, the recipient’s absence at the delivery address, partial or total loss or damage to the contents of the parcel are not covered by insurance.
For Consolidation Plus and Consolidation Direct shipments, the shipment deadlines for parcels with printed UPS labels (“Miami Label”) must be observed in order to receive an insurance payout.
How to insure a parcel?
You can insure the parcel during the document processing for forwarding in the Personal Account. The cost of insurance will be indicated in advance.
For Direct forwarding, the ability to insure nested parcels will appear only in the case of insuring the consolidated parcel that is going to Miami. That is, first you need to insure the consolidated parcel, and then, if desired, you can insure the nested parcels, each individually.
Is it possible to receive compensation if the parcel is not insured?
Western Bid pays compensation only in cases where the shipment is insured by the customer.
UPS Express shipments with a declared value not exceeding $85 – are automatically insured for the stated value of the shipment, and in the event of loss of such a shipment the customer will be paid compensation equal to the declared value of the shipment plus the amount paid for postage, but the amount of compensation cannot be more than $85.
FedEx shipments with a declared value not exceeding $100 – are automatically insured for the stated value of the shipment, and in the event of loss of such a shipment the customer will be paid compensation equal to the declared value of the shipment plus the amount paid for postage, but the amount of compensation cannot be more than $100.
Is shipping insurance available in all countries?
Please note, that with UPS Economy DDU delivery there is tracking of parcels only in six countries (Canada, China, Israel, Japan, Singapore, and the United Kingdom). In other countries tracking is not available, therefore loss insurance for UPS Economy DDU deliveries is not provided.
The modern world is changing rapidly, and online shopping is becoming increasingly popular. However, as delivery volumes grow, so do the risks. Insurance for parcels or postal shipments is a reliable solution to protect the interests of both senders and recipients, providing confidence and peace of mind with every shipment.
Frequently Asked Questions about Insurance
How to insure parcels
You can insure the package during the document processing for forwarding in the Personal Cabinet. The cost of insurance will be indicated in advance.
Does insurance apply to UPS Economy DDU shipments?
Yes, you can choose the insurance option (1%) for UPS Economy DDU when shipping to countries where full tracking is available (Canada, the United Kingdom, Japan, and others).
Can I insure the package after it has been sent?
No. Insurance can be arranged only at the moment of creating the consignment note in your account. After the shipment has been handed over to the warehouse, it is not possible to add insurance.
How to insure a product valued at over $1000?
You specify the full cost at checkout, and the system will automatically calculate a 1% fee. For very expensive shipments, we recommend using FedEx or UPS Express services.
What to do if the package was stolen from the customer's doorstep (Stolen)?
If the package status is “Delivered” (Delivered), the loss insurance coverage ends. In such cases, the customer must contact the local police and the United States Postal Service.
Is the cost of the insurance itself (1%) refunded when a payout is made?
No, the payment for insurance is the cost of the protection service and is non-refundable, but you receive 100% of the cost of the product and all delivery costs.
In what cases can you receive compensation?
Compensation is provided only in the event of a parcel loss confirmed by the postal service. Delivery delays, problems at customs, the recipient’s absence at the delivery address, partial or total loss or damage to the contents of the parcel are not covered by insurance.
Comparison: Carrier Liability or Western Bid Insurance
| Parameter | Standard Liability (e.g. FedEx) | Western Bid Insurance (1%) |
|---|---|---|
| Payout amount | Up to $100 (limit) | 100% of declared value |
| Delivery reimbursement | Usually not reimbursed | Yes — reimbursed in full |
| Claims processing speed | From 1 to 3 months | Immediately after loss is confirmed by mail |
| Service cost | Included (but limited) | 1% of the amount (minimum payment) |