Declared value is essentially insurance for a particular package purchased at the time of shipping, which is offered by the carriers to the shipper as a precaution. If nothing happens, then the carrier keeps the money you paid, just like insuring a rental car and returning it.
However, declared value can get tricky quickly. It seems like a no brainer to insure all of your packages, but that insurance can end up costing you a lot more than the package is worth and most companies don’t actually make many claims.
It's not uncommon for someone to give their account out to a supplier or a third party who is, out of fear, going to over-insure the package and not realizing that they are driving up parcel costs substantially. As the shipper of record, they file the claim and get the money to replace the lost or damaged product. So it is all reward, and no risk to put insurance on your accounts. It is hard to monitor your third party shipper behaviors without the right tool.
Parcel BI makes it very easy for you to:
The first step to take control of your declared value issue is to check with your business insurance provider and see if you even need to use declared value.
The second step is to understand if you are declaring the right values, and this is where Parcel BI comes in. Contact us today to see how our business intelligence tools can help you save money on your parcel spend.
You can also learn more about our parcel data management tools by watching more videos like this in our video library.