What is InsureShield™? Benefits of UPS Shipping Insurance Option in ReadyShipper X

 In Shipping Insurance

As an ecommerce retailer taking all the necessary steps to ensure your package is delivered and intact not only benefits the customer, but your business as well. When an item goes missing or arrives broken it’s usually the retailer that ends up on the hook with your business’s reputation at stake and not the shipper.

You do everything correctly. You choose a reputable shipper and send the package to be processed for delivery. Hoping that your package arrives without an issue is not a good risk-mitigation technique.

There are a few common occurrences that could happen:

  • The item goes missing or is stolen in transit
  • The delivery driver places it at the residence in a semi-secure location, but it falls victim to porch piracy.
  • The item arrives damaged

We will go over some statistics related to porch piracy, shipping container theft and the necessity for you to protect your business from loss as an ecommerce retailer by using an option like shipping insurance.

Los Angeles Union Pacific Train Robberies

The vast majority of packages are delivered without incident, but 1.7 million packages are lost or stolen totaling a staggering $25 million in losses every day in the US.*

(Sights like this are becoming commonplace as crime runs rampant on L.A. railways - Photo credit to NY Times)

(Sights like this are becoming commonplace as crime runs rampant on L.A. railways – Photo credit to NY Times)

The robbery of goods in transit from one place to another have been occurring since the development of trade among humans. Before train robberies, it was wagon and caravan robberies. Recent events in the east Los Angeles neighborhood of Lincoln Heights have brought to light just a small part of the issue of chain supply crime we face today.

In the last three months of 2021, when holiday shipping was at its peak, an average of more than 90 shipping containers were “compromised” every day, a spokesperson for Union Pacific, Adrian Guerrero, wrote in a December letter to George Gascon, the district attorney of Los Angeles County. Without detailing what goods were stolen, the company had estimated that it had incurred $5 million in claims, losses and damages.

With people out of work due to COVID, the increase in the cost of living and homelessness in the US, it has created a perfect storm causing people to feel the need to commit crimes to get by.

The situation in Los Angeles is unfortunate, but as an ecommerce retailer it highlights the need to take steps to protect your business from shipping losses.

Additional Shipping Crime Statistics*

  • 35 million Americans say they have been the victim of package theft within the last year
  • $5.4 billion is the total value of packages stolen from Americans over the past year
  • Gen Xers are the most likely generation to have stolen a package in the last 12 months, with 4.57% saying they have. Millennials are the second most likely at 4.3% followed by Gen Z with 3.8%
  • 29% of men admit to being porch pirates compared to 0.85%for women. This means men are 522.35% more likely to engage in porch piracy than women.
  • Through September of 2021 California topped the list of states with reported cargo thefts at 208 followed by Texas with 162 and Florida 117.*

Value of goods stolen and recovered in cargo theft crimes in 2020 in the United States

Stolen Recovered
Consumable goods 3,960,158 315,134
Medical, medical lab equipment 3,619,283 2,661,394
Drug equipment 3,600,000 0
Merchandise 3,010,104 97,851
Trucks 2,802,648 1,936,145
Household goods 2,256,534 96,874
Trailers 1,902,556 1,105,186
Portable electronic communications 1,000,234 1,800
Vehicle parts 841,263 11,312
Automobile 604,802 360,452
Tools 543,685 55
Alcohol 481,561 300
Other motor vehicles 332,502 150,000

Sourced from Statista.com

Online Sales on the Rise

In a report from the United Nations Conference on Trade and Development in May of 2021, global ecommerce jumped to $26.7 trillion boosted by COVID-19.*

Online sales were steadily on the rise prior to the COVID-19 pandemic. Since then, online sales have surged greatly. As people adhered to lock-down restrictions and many people began working from home, having items delivered to their home became even more common than before to avoid crowds or simply for convenience.

By the end of 2022 e-retail revenue is projected to grow by $6.54 trillion, up from $3.54 trillion in 2019.*

The massive increase in online sales means more product in transit and more opportunities for stolen packages. Clearly, the risk of loss to your ecommerce business through botched deliveries is too great to just hope that your packages are delivered without issue. Being proactive in protecting your merchandise is the best course of action.

In fact, 61% of customers believe online stores are not doing enough to prevent package theft according to a survey conducted by Shorr.*

ReadyShipper X with InsureShield™ Shipping Insurance

InsureShield is coverage that meets retailer demand. InsureShield is not carrier liability, but actual shipping insurance. It’s all-risk coverage powered by UPS Capital Insurance Agency, Inc. and available to ReadyShipper X users.

Let’s go over some of the features InsureShield offers:

  • Use it in ReadyShipper X! – You can add insurance, file and manage claims all from directly within the ReadyShipper X dashboard.
  • Policy customization – You’re in control with flexible insurance coverage. Build a coverage plan that covers your business needs with different deductibles, payment and integration options.
  • Multimodal, multi-carrier coverage – Ship your way. Whichever carrier you ship with, whether you go ground, air or ocean, and whether you’re shipping one package or all your shipments. There is no need to stress because you’re covered.
  • Fast claims payment – Never stress about tracking down a claim again. Most claims are paid within 5 business days or less, and you will always have access to the 24/7 InsureShield claims portal.
  • Full-value reimbursement – Get what it’s worth. With InsureShield you’re covered up to invoice value plus freight in case of a loss or damage.
  • Theft protection/Porch piracy – As we have shown porch piracy is on the rise, but they won’t steal your good customer ratings. With ReadyShipper X featuring InsureShield powered by UPS Capital, you’re covered for mysterious disappearances of goods post-delivery.
  • Non-delivery coverage – If a shipment is headed back to you due to being refused or returned, you’re still covered. That way if a package gets damaged or doesn’t find its way back for any reason, you’re not out of luck.
  • Expedited reshipment – Your customers will not have to go without their item for too long when the worst happens. You can reship and relax because through InsureShield expediting costs are covered up to 20%of the insured value.
  • Extended claims period – With ReadyShipper X and InsureShield powered by UPS Capital you have 90 days to report concealed damages and 9 months to file claims. Give your customers peace of mind knowing they have time after a package is delivered to identify any damage.

Another benefit of InsureShield is time saved. Many small business owners have many responsibilities to take care of. With InsureShield a retailer can set it up once and forget about it, fully automating shipping insurance.

Take advantage of ReadyShipper X with InsureShield powered by UPS Capital today and have the peace of mind that your packages are covered protecting your ecommerce business from loss no matter what happens.

Are you ready to ship smarter? Check out all the benefit of InsureShield powered by UPS Capital in ReadyShipper X today! Click Here to Learn More.

Insurance coverage is underwritten by an authorized insurance company and issued through licensed insurance producers, including UPS Capital Insurance Agency, Inc. (“UPSCIA”), a subsidiary of UPS Capital Corporation (“UPS Capital”). The insurance company, UPSCIA and its licensed affiliates reserve the right to change or cancel the program at any time. You may be offered the opportunity to insure eligible shipments under a policy of insurance (the “Policy”) issued: (i) directly to you; (ii) to UPS Capital; or (iii) to the sender/ publisher of this communication. Where the Policy is issued to UPS Capital or such sender/publisher, such Policy extends coverage to your eligible shipments, but you are neither an insured nor an additional insured under such Policy. In the event of a loss covered under such Policy, any resulting claim payment shall be directed to you as a loss payee. This information does not in any way alter or amend the terms, limitations or exclusions of the applicable Policy and is intended only as a brief summary. Insurance coverage is not available in all jurisdictions and coverage is governed by the terms, conditions, limitations and exclusions set forth in the applicable Policy.