What you need to know about Shippo insurance

[thewoodguy1]

Well, Shippo started talking to me again today, they have been busy with the influx of new Ebay customers.  My overbilling problem relates to an attempt by me to purchase additional shipping insurance on Shippo.  I have learned that you do not purchase the additional insurance from Canada Post.  Shippo cuts into the loop between you and Canada Post and sends your insurance money to what I believe is a Shippo subsidiary.   Re my previous posting about being over billed, I have asked for receipt for the additional insurance I attempted to buy (but never got) or a refund.  That query has gone up the chain of command and is yet to be  answered.

If you purchase additional shipping insurance from Shippo and you have to make a claim; You have to make TWO claims.  You have to claim the first $100 to Canada Post and the reminder to Shipnurance.  Rather than re-type everything I going to do a snip of the email that I received in response to my questions.  I hope that is allowed here.

Here goes I hope this works.

Hello Fred,

Rebekah here again to help answer your questions. Answers below pertain to Shipsurance, our third-party insurance provider, assuming a package of $400 value. The terms I reference can be found here: https://goshippo.com/terms-service/insurance/

a.) Canada Post covers the first $100. When purchasing insurance from Shippo do you purchase just the additional $300? Yes, this program is additional insurance on top of the $100. After Canada Post pays up to the $100 limit, Shipsurance would cover the remaining $300. You'll only need to purchase $300 of insurance. Excerpt from the Terms below:

b.) If a claim is required, do you have to claim the first $100 from CP and the $300 from the 3rd party? Yes, see above

c.) Are you supposed to purchase the full $400 from Shippo and forget Canada Post? If you purchase $400 of additional insurance through Shipsurance, then your package will be insured for $500, which would exceed the value.

d.) Canada Post is not listed on the list of carriers that Shipsurance supports (that I could see)? Yes, Canada Post is one of the carriers covered. See excerpt below: ​​

Please let me know if there are other questions we can answer! As soon as Amanda has additional information about your billing question, we'll get back to you with that update.

Cheers, Rebekah 

Fred here again.  I hope this helps, for the packages that I ship that require additional insurance, I will purchase directly from Canada Post.  I read some of the Shipnurance web site; way too happy and too oversimplified and so easy, yeah, right, I believe that;  sounds a little scammy to me.

All the Best,

Fred

[sylviebee]

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I hope this helps, for the packages that I ship that require additional insurance, I will purchase directly from Canada Post.  I read some of the Shipnurance web site; way too happy and too oversimplified and so easy, yeah, right, I believe that;  sounds a little scammy to me.

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Thank you for posting this.  Good to know that shipsurance can be bought directly via the Shippo site.  

Shipsurance isn't scammy at all.  I've had an easier time collecting from them that from the CPO.  In fact, I've had such a difficult time with the CPO I'd take shipsurance over CPO insurance when there's a choice.

[dutchman48]

This becomes a real mess when you ship what CP does not cover.

You then have to buy the extra 100 from Shipsurance to get the whole amount insured.

I bet Shippo can't do that.

Hence why I use CP at the counter and then buy insurance from Insure Post on line. Nothing to mess around with.

[rose-dee]

I'm feeling right now like I've just been thrown overboard.  

Things were so straightforward and efficient with the previous Paypal service.  Coping with the challenges of shipping costs is bad enough, but now we also have to cope with the challenges of shipping methods.  And mostly work out solutions on our own.  Very depressing. 

[dinomitesales]

Ugh, this is quite frustrating and overcomplicated.

Can anyone comment on the cost of additional insurance through Shippo/Shipsurance compared to the $2.25/$100 coverage through Canada Post? I've never used Shipsurance nor have I had to print a shipping label yet through Shippo.

[dutchman48]

It has been  $1.60 US when purchased direct on line from Insure Post which is Shipsurance for one off parcels, and they cover more than CP does.

You also have to be careful as they only insure to certain countries so not sure what Shippo will do then.

[dutchman48]

Yes, all of this is going to be an absolute mess

[thewoodguy1]

I am in total agreement.  The changes of the past two years have dampened my enthusiasm for selling ebay so much that I have to drag myself into the shop to get product ready. 

Hmmmm.   Maybe medication is required...............

Keep Smiling,

FAR

[mrdutch1001]

Not planning on using Shippo anytime soon...I am quite content to use Canada Post's Snap Ship &/or PayPal shipping - I'd much rather pay for convenience than use a shipping method that is way too much hassle..Shippo is way over-complicated, insufficient for my needs, inconvenient & simply not worth the bother. If Shippo ever gets close to being as good as either Snap Ship or PayPal shipping then & only then will I open a Shippo account.

[hlmacdon]

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@sylviebee wrote:

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I hope this helps, for the packages that I ship that require additional insurance, I will purchase directly from Canada Post.  I read some of the Shipnurance web site; way too happy and too oversimplified and so easy, yeah, right, I believe that;  sounds a little scammy to me.

_________________________________________________________________________

Thank you for posting this.  Good to know that shipsurance can be bought directly via the Shippo site.  

Shipsurance isn't scammy at all.  I've had an easier time collecting from them that from the CPO.  In fact, I've had such a difficult time with the CPO I'd take shipsurance over CPO insurance when there's a choice.

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I would echo this as well. I've used Insurepost (same company as Shipsurance) since 2012 and have never had a claim denied (I can only speak to claims for package loss) compared to a convoluted mess on two Canada Post claims. The claim process is simple and straightforward. As for who they are as a company, Shipsurance is a subsidiary of Assurant, Inc who have $30 billion in assets and $6 billion in annualized revenue and are a Fortune 500 company.

With any of the US shipping aggregators it its common practice to have a third party insurer offering insurance. It is the same with Stamps, Endicia, etc, hence there is nothing unsual or scammy with Shippo using a third party insurer. Shipinsurance is one of the major providers in that space

[intimewithmusic]

    I'm with Fred. I've been using Shippo for Canada Post since Shippo joined eBay. I currently have a small package (1 pair drumsticks) seemingly stuck in German customs for two weeks. The selling price was $180 plus shipping. (Michael Jackson's sticks) At the time I printed my label and paid for extra insurance Shippo not not disclose that I was actually buying insurance from TWO sources. From Shippo's response to Fred the woodman I can see to know this  you would have to 1st click on a menu somewhere and read shipping/insurance policies. 

  Fred is not complaining about the Shippo Insurance service. His and MY problem is having to make two separate claims and wait for two separate reimbursements which may or may not be granted.  International shipping is hard. Getting a piece of memorabilia to a collector in a foreign country is complex work depending on what you ship and where.  Sellers have packaging, manifests, import restrictions etc to overcome without having to pile on red tape and paperwork when things go amiss. That is Fred's point as I see it.

   When things do go wrong (lost/damaged/ shipment) Shippo recommends Sellers deal with Canada Post (or any courier) directly. They do not go to bat for you. You are on your own. The value of using Shippo and Shippo Insurance is convenience (less clicks) and a discount, a very small discount. I may have saved $1 to $2 on the Michael Jackson shipment. Shippo on the other hand will not deal with Canada Post, German customs or the 3rd party insurer. You have to do that.

  I'm not upset with Shippo. I'm just pointing out what you are paying for. The very least they should do is change the toggle when you buy extra insurance. It should indicate you are buying it from 2 different  3rd parties and you must adhere to the claim policies and potential refusals of each one.  In your Shippo Account under "shipments" it shouldn't just say "Insured" under your  order. You should also be able to see a receipt for the  insurance you have paid, how much insurance you have and from who. there is no transparency when it comes to Shippo Insurance in your customer account with them.

   In the future my shipments over $100 CA will not be processed through Shippo unless they change this. The convenience to save a dollar ain't worth it! I will happily upload my own tracking number to avoid the hassle of dealing with two insurance companies.  For me  the disappointing loss of a shipment that took a ton of work and left both the Seller and the Buyer feeling robbed is bad enough. 

  Frankly I like that Shippo is quick to answer your questions even if it's not what you need to hear. I would like to suggest they are shooting themselves in the foot. Shipments above $100 in value usually command higher shipping rates and insurance rates. In effect Shippo is driving customers away including thewoodguy1 and intimewithmusic.  I hope Michael's sticks get to my Buyer so I don't find myself in thewoodman1 's shoes.   Too many slivers!     I'm with Fred!

[kawartha-ephemera]

I too would prefer a shipment be insured by a single provider.

However, I don't see how Shippo is misleading people or misrepresenting what they're selling. They make it very clear they are selling Shipinsurance. They probably count on that revenue for a considerable portion of their profits.

[reallynicestamps]

I have never used Shipsurance, but they do have an excellent reputation for one-off insurance coverage and for response to claims.

they only insure to certain countries

This has been mentioned before (in other threads) as a benefit.

If they won't ship there, it's not a good idea to sell there.

[intimewithmusic]

I have an update to my comments above. My item is still stuck in German Customs. (3 weeks now) The first Canada Post CSR told me I had to wait until 30 days after the item was shipped before doing anything. That is today.  I called Canada Post again. This is what the CSR said:

PROS & CONS

1. The first CSR was wrong.  A shipper has to wait 45 days from date of shipping  before they can do anything.

2. Canada Post does not include ANY insurance on international items sent "Tracked Packet". No automatic $100. When you ship directly through CP's Snap Ship you get that information along with a list of insurable options. You do not get that information using Shippo.

3. CP does not insure shipments to many countries. You get that information when you use the Canada Post website and enter in the destination country.

4. If you ship direct through CP (no 3rd party) your discount increases with  your volume (Levels 1 to 4). Shippo shipments using CP aren't counted to your credit nor influence the Canada Post discount if you also deal direct.

Now I can't remember what value of insurance I asked for when I filled in the shipping details. You should be able to look that up in your dashboard  "Shipments". Shippo is good at replying so  I know  I can discuss it with them if I end up having to make a claim. Live and learn!

Summary: It may be that Shippo & Shipinsurance IS the way to go if Canada Post won't insure items like "Tracked Packet" or items going to countries that Shipinsurance will insure and Canada Post won't. I'm sharing this here so that other Ebay Sellers can learn from my potential mistakes.

[momcqueen]

I'm sorry to hear of your troubles but I think you need to call CPC again for clarification.

Canada Post offers NO 'DELIVERED-BY DATE' GUARANTEES with Tracked Packet (only Xpresspost is eligible for that, Xpresspost and higher levels of service like Priority) but the sender is still insured against loss of contents with Tracked Packet.

Insurance does not buy a Delivery Time Guarantee, the two facets are different from one another. Insurance is for loss. Delivery Guarantees are a separate matter.

[momcqueen]

Small Packet (as opposed to Tracked Packet) on the other hand has no insurance whatsoever against loss of contents. And obviously nothing for Delivered-By guarantees. 

[intimewithmusic]

Thank you Momcqueen. It seems that every different Customer Service Rep gives different advice. You are right about the $100 liability insurance. I looked up "Tracked Packet International" and the Canada Post Site says that there is coverage up to $100 which is what I thought when I shipped it. The site however also says that ITP is not eligible for additional insurance over the $100. Maybe that is what she meant as the value of my shipment without the shipping cost was $180. So I am back at square one. As far as a guaranteed delivery time yes, you are right again there is no guarantee. That being said the cost of shipping, in this case $43.03 IS guaranteed if the package is not delivered 45 days after the shipping date. If things go badly and my shipment is lost then I may have to file 3 separate claims $100 Canada Post liability, $80 Shipsurance, $43.03 Canada Post Shipping as well as refunding the customer and getting Ebay & Paypal seller fees reversed. I'm keeping my fingers crossed on this one! 3 weeks in German customs seems excessive. Proper mainifests were on the outside with accurate declarations and one simple properly packed wrapped box with a pair of drumsticks in it. Easy to xray. I don't get it...

[momcqueen]

Mmm, sounds complicated. I don’t envy you for that job. I wonder if drumsticks can be hollowed for the purposes of smugling or something and that’s the reason it’s delayed. For closer inspection.

[intimewithmusic]

Yes. I removed the sticks from Michael Jackson's stage myself during The Victory Tour. Inside the box was a Certificate Of Authenticity. I suppose I will find out if they didn't mysteriously disappear from the customs center altogether. I wonder if, for irreplaceable items like this Fedex may have been a better choice over Canada Post albeit a much higher cost which might discourage Buyers. 

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@momcqueen wrote:
Mmm, sounds complicated. I don’t envy you for that job. I wonder if drumsticks can be hollowed for the purposes of smugling or something and that’s the reason it’s delayed. For closer inspection.

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[momcqueen]

I'm not sure if FedEx would have helped. These sound like a prize piece, absolutely. Complicating factor also is that the Germans never overlook charging their import fees. They are adept at assessing those tariffs, not like here where many packages that owe import fees in reality are overlooked.