Parcel delivery is an increasingly essential part of keeping society moving. Maintaining a parcel delivery business can be fast-moving and challenging, but you have tools available to keep your investment profitable. Parcel delivery insurance can provide financial protection against lost, stolen, or damaged parcels. However, when shopping for insurance, it’s important to know what you’re getting so you can avoid surprises. Parcel delivery insurance doesn’t cover everything, meaning you’ll need to find the policy that fits your needs. Here’s what to know about parcel delivery insurance and what’s not covered - as well as how OVD Insurance can help.

What Does Parcel Delivery Insurance Typically Cover?

Parcel delivery insurance is designed to give general coverage for lost, stolen, and damaged parcels. It typically includes general merchandise, documents, and non-fragile goods. However, not all policies are similar. If you need specific coverage or don’t pay close attention to the terms of your policy, you can experience unexpected hardships for your business.

What are Common Exclusions in Parcel Delivery Insurance?

Here are some of the most common exclusions in parcel delivery insurance:

Valuable and Sensitive Items

Valuable and sensitive items are things that aren’t easily replaceable or are good targets for theft – these include cash, jewelry, antiques, art, and precious metals. Obviously, these are high-risk items for insurers to cover, which is why they’re often excluded. Some insurers offer separate high-value item policies that get you the coverage you need.

Fragile and Perishable Goods

Glassware, ceramics, electronics, and food are all fragile or perishable goods that aren’t often protected with parcel delivery insurance. Often, the problem comes with packaging, which can expose the items to damage or spoiling. An insurer might have specific requirements for packaging in order to qualify for coverage.

Hazardous Materials

Hazardous materials include things like explosives, toxic substances, and flammable liquids. Clearly, these things can put workers and customers alike at risk, so they’re not often covered. Additionally, there are often legal restrictions on shipping these types of goods, which can cause extra challenges. Finding a knowledgeable insurer who can help you stay compliant and still be protected is key.

Restricted and Prohibited Goods

Restricted and prohibited goods like weapons, counterfeit items, and illegal substances can run into the same roadblocks as hazardous materials when it comes to coverage. Again, finding an insurer who knows the restrictions and legislation in your area around shipping these items is essential.

High-Risk Delivery Locations

Certain locations can naturally create more risk for deliverers and customers, whether because of conflict, high amounts of theft, or low accessibility. Certain additional policies offer coverage for delivering in these areas, meaning it may be smart if you face these operational challenges.

How to Make Sure Your Shipments Are Covered

One way to ensure your shipments are covered is knowing the details of your coverage and carefully reading any documentation. Secondly, make sure your packaging and labeling meet your insurer’s requirements, especially if you’re working with hazardous, fragile, or restricted items. Finally, know the ins and outs of your coverage needs and consider additional policies accordingly.

Parcel Delivery Insurance with OVD Insurance

At OVD Insurance, we have deep expertise in the parcel delivery industry and can help you craft the insurance package that fits your business needs. To learn more, contact us today.