Insurance add on feature

jamesuniverse

New here so bare with me if this is already implemented.

I am curious on the best way to offer insurance? Since I have a few high value items in my store, I don't want to be sending those items uninsured. I could expense it out of my own funds, but that seems unnecessary.

Have an option when creating a shipping method for insurance to be toggled.

US Priority Mail, based on weight, but Insurance can be purchased based on order value. If a buyer wants to order a set via priority mail that is $200, the priority mail (weight based) would be the shipping charge, but if he/she checked a box for insurance that would then refer to the priced based insurance for that priority mail method and add that to the total.

Just an idea.
~JU

Hoddie

I personally wouldn't want to see this. It may not be the same in the US but in the EU, insurance protects the seller only and sellers who offer customers the option of paying for it are basically scamming them.

You can already use existing settings to restrict high value orders to shipping options that offer the seller sufficient insurance cover.

jamesuniverse

I personally wouldn't want to see this. It may not be the same in the US but in the EU, insurance protects the seller only and sellers who offer customers the option of paying for it are basically scamming them.

You can already use existing settings to restrict high value orders to shipping options that offer the seller sufficient insurance cover.

Ok. I see your point, but the problem I have is that does a 10lb $100 order that the customer chooses the insured method get charged the same as someone who has a 1lb $100 order? Or What about a (both insured) 1lb $10 order vs a 1lb $200 order? Insurance is gonna be drastically different.

~JU

Hoddie

Yes I see what you mean, you have to set shipping rates either by weight or value and cannot combine the two. This would be a welcome addition.

Lawrence

I believe the way to handle this, for each shipping method, you create a with and without insurance version. Set an upper price threshold on the without insurance, and a minimum threshold on the with insurance. For the with insurance, increase the shipping price to include the cost of insurance.

jamesuniverse

I believe the way to handle this, for each shipping method, you create a with and without insurance version. Set an upper price threshold on the without insurance, and a minimum threshold on the with insurance. For the with insurance, increase the shipping price to include the cost of insurance.

Can it be done? Yes. But if I wanted to make sure all orders up to $500 were covered I would need probably 5 different shipping methods (Based on weight!) just for insurance of US orders! So many more options for international. Seems extremely excessive.

~JU

Stragus

Interesting, I guess it wouldn't be a bad idea to be able to configure a shipping method to add x% of the order's value as shipping, supposedly for insurance. It may be worth considering.

Lawrence

FYI, once you make a shipping method, you can duplicate it, then update the prices. Shipping methods aren't simple, blame your post office

Hoddie

A method exists to achieve what the OP wants. Although a bit messy on the back end, the customer should still only be presented with one shipping option when checking out. A few minutes work to set up and then again whenever the shipping rates change (2-3 times per year at the absolute most?) is not that much hassle.

I think introducing an option that adds a % to the shipping cost to account for insurance would be a mistake and some sellers would abuse it by offering "with insurance" and "without insurance" rates.

marshalltoys

In Australia domestic Parcels for Extra Cover cost $1.50 per $100 of your item's value (or part thereof); It prints out on the shipping label "Extra Cover" so the when the buyer receives the item he/she will have known if the Extra Cover was added (Should show Value when you look up the tracking).

It should be an option for Extra Cover/Insurance apart from the shipping. I already have 6 different options for domestic shipping (different sizes and Express and non-express) these are based on weight so I would have over 12 different shipping options, just confusing buyers.

Lawrence

@marshallcomputers you can use minimum and maximum order subtotal limits on the shipping methods so the customer will not have lots of options to choose from.

jamesuniverse

@marshallcomputers you can use minimum and maximum order subtotal limits on the shipping methods so the customer will not have lots of options to choose from.

If I put every option available, I would be looking at probably 6 different options without insurance and 6 more with insurance.
Priority Mail
Priority Mail Express
First Class/Standard Post
Next-Day
Priority Mail Regional rate (3 Box sizes)
Priority Mail Flat Rate (Lots of box sizes)

Now I won't be using all of these, but having a simple checkbox that inscreases the price per a chart the seller makes (let's say I charge $2.10 for orders between $100-$200) this would be much simpler for the buyer.

I'm thinking long term here as this probably won't be the last time someone requests for an insurance option.
~JU

brickfeverparts

@Hoddie

I need to say your on a buyers seat at all times, wich is just fine.....

However, why cant i get some protection as a seller as well? Can you explain that to me please?

We, as a company, started shipping all orders above 25 euro and paid via PayPal, insured only!
As we lost many money for parcels went missing along the way, and buyers have all protection when paid via PayPal, i figured, so need i as a company!

the most funny thing, since we have this rule (more then one year now) we actually lost 2 parcels!
Strange huh, you say all sellers are monsters, trust me, loads of buyers are also, unfortunatly!

Your post about Insurance being nonsense and only protect the seller, well, i strongly disagree. As an insured lost parcel will refund me at leat my cost price of items, i reship the odrer anyway or simply refund the payment in total.

Why is it so bad that as a commercial company i can have some protection as well?

Needed to say that, sorry.....

Hoddie

Don't put words in my mouth. I never said sellers are monsters or that all buyers are genuine...

I'm merely stating that from a legal standpoint, insurance offers nothing extra for buyers. Consumer law (at least in the EU) entitles them to a refund if their order never turns up. This is regardless of whether or not the buyer paid extra for insurance and regardless of whether the seller bought it.

If a seller (in the EU) offers two shipping options for a particular order and the only difference is that one comes with insurance and one does not, they've either made a mistake with their settings or they're flat out trying to con you. Sellers (in the EU) who openly state that "they are not responsible for lost packages if the buyer does not purchase insurance" either don't understand consumer law or are knowingly acting contrary to it. Give them a wide berth.

OvertheBrick

The whole insurance discussion seems such an odd concept to me. I can't seem to remember any purchase I did in any online store (other than BL) where insurance was even an option.
For me this is purely on the seller responsibility and should not be exposed to buyers.
(how the seller deal with it is his own decision).

DadsAfol

Insurance is seller protection, not buyer protection. In all cases (except outright fraud), sellers should refund or resend packages that never arrive. Larger sellers may be more willing to self-insure (not purchase insurance, but choose to eat the cost of a lost parcel). Every seller determines their own "pain point". Whether its $20, $200, or $2000. Above that point you purchase insurance. Build this cost into your shipping tables. Buyers should not have a "with insurance" and "without insurance" option in your store. They should only choose the speed of delivery.