Jul
13
2010

eBay’s New ShipCover Insurance – Is It Worthwhile? (Updated)

eBay has announced their “2010 Fall Seller Update” which includes their new “ShipCover Insurance” offering. This shipping insurance is provided by PIP, a private insurance provider.
Since this announcement was made, we have had many of our eBay customers contact us asking questions about this new coverage. They want to know if it is a “good deal” and “worthwhile”. We cannot directly answer those questions but we will use this venue to answer some questions and comments we have heard by explaining the details:

ShipCover Insurance from eBay

  1. ShipCover IS NOT offered by our company, Shipsurance.
  2. eBay is selling the insurance and thus will be integrating some of the claims process with their “Resolution Center”.
  3. PIP will be handling the claims.
    1. eBay’s help page states “… PIP will contact you directly about your claim. If you don’t hear from them within 3 weeks, you should contact them…”
  4. Coverage is available for shipments sent via the USPS, only.
  5. Insurance rates are not deeply discounted.
    1. Rates are $1.23 per $100 of coverage.

ShipSaver Insurance from inkFrog & Shipsurance

  1. ShipSaver(the eBay Application from inkFrog and Shipsurance) is a program that offers lower cost full coverage.
  2. It is a fully integrated eBay Application that allows eBayers the ability to insure their shipments from within their “My eBay” page.
  3. ShipSaver rates are currently $0.65 for Domestic USPS shipments and $0.95for International.
    1. If you insure 10 U.S. shipments with a value between $1 and $100 each with ShipSaver, you only pay  $6.50. With ShipCover, it is $12.30! Almost 50% less.
  4. Coverage is offered for USPS, UPS, and FedEx shipments.
  5. Claims are paperless and submitted directly through the “My eBay” page.
  6. Coverage is underwritten by Lloyds of London, one of the largest insurers in the world.

Shipsurance Open Policy Holders – Request a Quote Now!

  1. Lowest rates.
  2. eReport Pro program integrates with your eBay account!
  3. Higher limits of coverage.
  4. Broader coverage – more items are covered.
  5. Coverage available for all shipping carriers, including large freight shipments.
  6. Covers eBay and off-eBay transactions.
  7. Coverage underwritten by Lloyds of London, one of the largest insurers in the world.

We hope we explained all the relevant details. Insurance though ShipSaver and Shipsurance is by far the best option for most eBayers, but we are biased! However, the breakdown above and our track record of paying claims fairly and rapidly should speak volumes.

Is ShipCover from eBay worthwhile? We will leave that up to you to decide.

UPDATE: As of 10/1/2013 the new ShipCover rates are $1.65 per $100 of coverage

3 Comments+ Add Comment

  • DO NOT USE – If you make a claim, they will no longer allow you to use the service!!!

    • Here’s my story, I have been using ShipCover Insurance for ever since they began to offer it. Every single international package I mail out I insured with ship cover. I made every effort to make sure that packages were mailed correctly and even take the time to put a second large address label on the package so even a blind man can see were it needs to go. I recently filed two claims for packages to the Ukrain. I even delayed the buyer for 45 days to wait for the package. He claimed multiple times he did not get either package. I filed a claim and was paid this time but I am not allowed to use shipcover insurance anymore either. Here’s my point, ShipCover or (ShipCover is provided through eBay Insurance Services (eBay Insurance Brokerage Services in New York) and Parcel Insurance Plan (PIP) and is underwritten by The American Insurance Company, a subsidiary of Fireman’s Fund Insurance Company.) picks and chooses who they will insure regardless of the circumstances. If you use this company be advised that you can be dropped as a customer anytime they please. I fully understand if there is fraud involved the customer should be dropped but when postal services lose or steal packages that is not fault of the seller. If a country has a high rate of lost or stolen packages the insurance company should drop the country not the customer. Also if you buyer does not acnowledge that they have not recieved the package you may not get paid on a claim at all. Again not the sellers fault. My best advise to Ebay sellers – SELF INSURE – and don’t sell to countries with a high rate of lost and stolen mail.

      Helpful Resources

      • I’M A TOP RATED SELLER/POWER SELLER HIGHLY REGUARDED BY E-BAY. I CAN NO LONGER INSURE THROUGH SHIP COVER(PIP) EBAYS INS. CO. ALSO DUE TO A LOST PACKAGE THEY MADE GOOD FOR. EBAY CAN’T OR WON’T HELP ME. THE INS. CO
        CANNOT SAY IF THEY WILL EVER RE-INSTATE ME. TOTAL BUMMER. NO ONE GIVES ME EVEN A SLIGHT ANSWER TO WHY AND WHATS NEXT. I’M REALLY AT A LOSS ON HOW TO PROCEED TO GET ANSWERS. ONCE YOUR DROPPED IT SEEMS/CASE CLOSED.

        THOUGHT I’D SHARE THIS WITH YOU.

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