I "self insure" of small packet items only. As you are probably aware, CanadaPost does not offer insurance on this service.
Some time ago I started offering my customers the option of paying an additional $1.50 USD per item if they wanted insurance of items that ship Small Packet Service. I accumulate this money in an account within my accounting program (QuickBooks Pro). Payouts are also made from this account.
As opposed to the Post Office, my insurance is only available for breakage. If an item is damaged in transit the customer is required to email me a pic of the damage to the item (and packaging). Based on that evidence I personally honour the claim (refund including S/H or replacement as the customer wishes).
Since I started doing this before Xmas last year I have only had to pay out 5 claims. The account is currently $310 in the black.
Sometimes, if the S/H in my auction is enough (ie $5.95 USD), the additional $1.50 will allow me to "bump" the item up to Expedited Parcel-USA which automatically includes $100 insurance and also provides DelConf.
It has worked well for me.
Bill
