Self-insuring your items

Some sellers on eBay self-insure their packages. In other words, they take the risk and use money out of their own pockets if they have to pay a claim. In this sense, self-insuring is considered seller’s jargon, not an official legal status (only licensed insurance agents can offer insurance).

These sellers are usually careful about packing their items to prevent damage. (Check out Chapter 1 in this minibook to find out about choosing and finding packing materials.) They also always use tracking numbers when using the Postal Service.

Savvy self-insurers usually do not self-insure items of high value. If you sell mostly lower-priced items (under $100) and decide to self-insure, consider making an exception when you do occasionally sell an expensive item. Bite the bullet and pay for the shipping insurance; doing so could save you money and hassle in the long run.

Insuring through the major carriers

All the major shippers are in the shipping business (duh), not in the insurance business. Insuring is an annoying — but necessary — sideline to their package-transit businesses.

Most carriers, other than the United States Postal Service, cover all shipments automatically (and at no extra charge) for the first $100 of package value. By the way, the package value of an item sold on eBay is the final bid (or Buy It Now) amount. Of course, you can always buy additional package insurance for your shipped items. Should a package get lost or damaged, making a claim opens an entirely new can of worms.

Note that FedEx and UPS clearly state that they offer “Declared Value Liability” instead of “insurance.” Declared value indicates the carrier’s liability for a shipment. Both carriers only cover up to $100, and you must pay the fees shown in Table 3-1 for their additional liability coverage.

Getting private, discounted shipping insurance

If you think that printing your own postage is slick, you’re gonna love electronic insurance. eBay offers insurance through their ShipCover division at www.shipcover.com. When you purchase postage and print labels through eBay, you can purchase their package insurance. Your insured value may be declared in any amount from the selling price of the item to a maximum of $1,000.

When you purchase ShipCover insurance to cover your USPS parcels through eBay, you are also charged a surplus line tax and stamping fee, as shown in Table 3-2.

To dissuade “porch pirates” and other nefarious types, consider purchasing private insurance; it’s safer. There is no INSURED sticker on the package to draw attention to the value of the item inside the box.

A less expensive alternative is used by a large population of professional eBay sellers: Universal Parcel Insurance Coverage (U-PIC) has provided discounted package insurance to sellers since 1989. U-PIC removes the post-office-insurance hassle because you can handle your insurance electronically. You can insure packages that you send through USPS, UPS, FedEx, and other major carriers — even internationally. If you use U-PIC insurance on USPS-shipped packages, you can save up to 85 percent on the carrier’s rates.

U-PIC caters to individual eBay sellers amidst its many big-business clients independently and through its relationship with Endicia. The insurance is also built in to many online postage software platforms.

Here are some great features of the U-PIC service:

• No time wasted standing in line at the post office: The U-PIC service is integrated into online postage solutions or can be purchased on a per-package basis on their website.

• Quick payments on claims: If you have a claim, U-PIC pays it within 7 to 10 business days of receiving all required documents from the carrier.

  As with any insurance policy, assume that if you have many claims against your packages, you can be dropped from the service. (This thought only gives me more impetus to package my items properly — I never want to be banished back to the counter lines!)

• Blanket approval: U-PIC is approved by all major carriers. And turnabout is fair play: All carriers covered must be on the U-PIC approved carrier listing.
• Savings: Again, depending on the quantity and type of items you ship, using U-PIC may save you up to 85 percent on your insurance costs.

FedEx Ground Declared Value and Limits of Liability (Not Insurance Coverage) covers packages up to $100.00. What they charge for items valued over $100 is a bit murky and buried in legalese. UPS coverage for declared value is free for $100 worth of declared value. After $100.01 in value, it’s a $2.70 minimum. UPS, too, is not very transparent about exactly what they will charge.

By using U-PIC (see Figure 3-1), you can insure your FedEx and UPS domestic packages for $0.65 to $1.00 per $100.00 value. You can find all their on-demand, online insurance rates at https://u-pic.com/buy-now/item/127Itemid=118.

You can try them out, if you don’t want to set up an account yet, by insuring single shipments; do so by clicking the Buy Now tab on their website.

To apply for your own U-PIC policy — with no charge to apply and no minimum premium — click the Apply Now button.

They’re a great bunch of people — tell ’em you learned about them in this book!

To place a claim with U-PIC on a shipment, just go to the U-PIC website, click the Claims link, and then choose an option from the File a Claim Online menu. You may need to supply the following:

• A signed letter, stating the loss or damage from the consignee
• A completed U-PIC claim form (one claim form per claim)
• A copy of the original invoice or the end-of-item form

If you’re a high-volume shipper, you can negotiate an even lower rate with U-PIC. Call their toll-free number at 800-955-4623. A sales representative will explain to you exactly how to declare value based on your present system.

If you have the Google toolbar (which I highly recommend in Book 8), or go to www.google.com, you can type any UPS, post office, or FedEx tracking number and find the current tracking information from the carrier’s website. Just copy and paste the tracking number into the Google search box and start your search. You’ll come to a page that presents a link to package tracking — with your number and carrier showing. Click the link and you end up at the carrier’s site with all the current tracking information. Nice!

Filing a claim with the post office

Making a claim with the post office: Oh man, talk about a hassle. But making a claim with any carrier isn’t a bowl of cherries on any day. Before making a claim with the USPS, check to make sure your package was covered by postal insurance, purchased at the time of mailing. If you use private insurance instead, you make a claim with your insurance carrier, not the post office.

When a package is lost in transit, you generally must wait a minimum of 21 days after the mailing date before you make the claim; for Priority Mail, you have to make the claim within 15 days. If an item arrives at the buyer’s door damaged, you may make a claim with the post office immediately.

There’s always a question as to who makes the claim:

• Damaged or lost contents: Either the seller or the buyer can file the claim.
• Complete loss: When a package has not turned up within 30 days, the seller files the claim.

You can file your claim online direct on the USPS site at

www.usps.com/help/claims.htm

To make a damage claim, you must produce evidence of insurance. This can be either of the following documents:

• Original mailing receipt: The receipt that was stamped at the post-office counter when the item was mailed.
• Original box or wrapper: This must show the addresses of both the sender and the recipient along with whatever tags or stamps the post office put on the package to say it’s insured.

You might also be asked to produce evidence showing the value of the item when it was mailed. The following list shows some of the documents accepted by the post office for damage claims (however, they may ask for more thorough proof):

• Sales receipt or descriptive invoice
• Copy of your canceled check or money order receipt
• Picture and description of a similar item from a catalog if your receipt isn’t available
• A letter from the seller stating the value of the item
• Your own description of the item, including date and time the item was purchased and whether it’s new or vintage

For missing packages, you (the seller) should get a dated letter from the buyer stating that the buyer never received the package.

If your buyer is too cranky to cooperate, go to the actual post office where you mailed the package. Ask for a written statement that there is no record of the delivery being made. Postal employees can look up the insurance or delivery confirmation numbers to find whether the delivery took place, but the post office will charge you $6.60 for their efforts. That amount will be reimbursed if the post office decides to pay your claim because it doesn’t locate your package under a bale of hay in Indiana. If all goes well and your claim is deemed legit, you should get your payment within 30 days. If you don’t hear from the post office within 45 days (maybe the payment got lost in the mail?), you have to submit a duplicate claim using the original claim number.

Note to self (and to you): Always make a copy of any form you give to the government.

Filing a claim with UPS

Whoa! The stories of filing claims with UPS are legendary. Almost any eBay seller can tell you quite a story. I must admit that making a claim with UPS is a good deal easier than making a claim with the post office. After UPS files and accepts your damage claim, you get a check within five days.

For damaged packages, UPS recently streamlined the process, although the buyer must make the claim. You can (if you really want to) call 1-800-PICK-UPS (cute, eh?) to file your claim. The better idea is to try the online reporting feature by going to https://wwwapps.ups.com/webClaims/create?loc=en_US&report_type=1&WT.svl=SubNav and filling out the form. Be sure you make a damaged item report to UPS immediately.

On the online claim form, you’ll be asked to input all information about the package and/or the damage. UPS seems to be familiar with its own handiwork because you get to select your particular type of damage from a menu. After you’ve filled out and submitted the form, just sit on your haunches and wait for the UPS claims department to contact you.

I recommend that you print your form after filling it out so you can keep all claim reference information in one place.

Save the damaged item and all the packaging that it came in. UPS may send an inspector out to look at the package before they approve a claim.

If a UPS shipment appears to be lost, the seller must call UPS to request a package tracer. If UPS is unable to prove delivery, the claim is paid.

Filing a claim with FedEx

Filing a claim with FedEx is similar to the UPS procedure, except FedEx gives you a little more leeway as to time. Instead of the 48-hours-after-delivery deadline, you have 15 business days to make your claim. (This extra time sure helps out when a package is delivered to your house and you’re out of town.) FedEx processes all Concealed Loss and Damage claims within five to seven days after receiving all the paperwork and information.

As with UPS, keep all packaging, along with the item, in case FedEx wants to come and inspect the damage.

You can make your FedEx claim in a couple of ways:

• By fax: You can download a PDF claim form with instructions at http://images.fedex.com/us/customer/claims/Claims_Form_2012.pdf. Fill out the form and fax it to the number on the form.
• Online: Fill out the online claim form by going to http://www.fedex.com/us/customersupport/managing/claims.

You must have a FedEx login to begin your claim. (See Chapter 2 in this minibook for instructions on how to get your login.) You still have to mail or fax your supporting documentation. When you file online, you can also choose to receive email updates from FedEx regarding your claim (good idea).