Can I Get Shipping Insurance On My Shipments? - FlavorCloud

Being able to insure packages allows you to ship and deliver stress-free.  The cost is minimal and offers peace of mind for valuable shipments. FlavorCloud offers a built in insurance policy that wraps up into your shipping costs for a seamless and comprehensive coverage for your international shipments.   

 

Note: At this time, insurance is only available if you ship directly with FlavorCloud. If you use FlavorCloud through a 3PL or partner, reach out to your partner for more information on insurance.  

Adding FlavorCloud Insurance to your shipments 

You are able to add insurance to your shipments in FlavorCloud. When you enable insurance in FlavorCloud, it applies to all your shipments. Before you enable insurance, read our Terms & Conditions for coverage under $10,000 USD and above.  

Steps 

1. In the FlavorCloud app, go to Account > Shipping and scroll to the Insurance Setting section.
2. Select ‘On’ option.

If you select the “On” option, this will add an insurance fee to your shipping rate and covers: 

• Value of the order  
• Shipping costs  
• Applies to all orders regardless of carrier 

 

Making a claim 

If you need to make a claim with an insured package, reach out to support@flavorcloud.com. Our Support team will handle all claim processing, so you don’t have to.

When you reach out to FlavorCloud support provide the following information:  

• Your company name 
• Order Number 
• Claim Type: Damage, Loss, or Shortage 
• Damage – a damage claim is when the shipment was damaged during the shipping process and damaged the items in the shipment.  
• Loss – a loss claim is if the shipment did not arrive to the final destination and has been missing for a reasonable amount of time. This is usually up to a week for most carriers.  
• Shortage – a shortage claim is if an order was sent in multiple shipments and not all shipments arrived at the final destination and has been missing for a reasonable amount of time. This is usually up to a week for most carriers. 
• Total claim amount 

The support team will submit the claim on your behalf and manage any back and forth with the insurance provider. If the claim is approved, you will see the return in your next billing cycle after the claim is approved.  This can take on average 5-7 business days.  

Understanding insurance costs and fees 

For your buyers, the insurance cost is rolled up into shipping costs. There is no separate line item for insurance. It is important to note, this additional fee increases your shipping costs and may impact your conversions.

For your billing visibility, insurance costs are included in your standard invoices and broken out into its own line item so you can see the costs. It can also be seen in shipment details within the FC app.

 Under $10,000 USD  

Insurance costs are $.70 per 100 USD of order value for packages under 10,000 USD. Insurance is calculated based on the shipping costs and order value of the order.   

Therefore, If you have an order with a value of 25$ and it costs 12.50 to ship, insurance will add .70 to the shipping costs because it will be calculating the base cost at $37.50. If you have a more expensive order that costs $320 and $40s to ship for a total of $360, insurance will add $2.10 to the shipping costs ($.70 + $.70 + $ .70).   

 Over 10,000 USD 

Insurance costs are based on current carrier rates and subject to change. If you have questions about exact rates reach out to our customer service team at support@flavorcloud.com 

Using default carrier insurance  

If you would prefer to use carrier insurance, most carriers apply default insurance on express service level shipments, usually up to a value of $100.  To use default carrier insurance only, turn off FlavorCloud insurance. If you are relying on carrier insurance there are important things to consider:  

• Insurance is by select carriers, typically only Express carriers  
• Maximum claim is usually $100  
• Approval and claim amount is solely at the carrier’s discretion, regardless of order value/costs and is usually based on wholesale price or costs of goods instead of selling prices.  
• Claims can take upwards of 90 days to be reviewed and approved/denied 

 Steps:  

1. In the FlavorCloud app, go to Account > Shipping and scroll to the Insurance Setting section.
2. Select ‘No’ option.