Insurance in Shipping
Insurance included in basic rate (guaranteed by carrier)
In most cases the insurance for a damaged or lost package, is purchased from the company that ships. It may frequently cause waste of money. An example from both UPS and RPS:
The shipper have to pay for every $100 over basic $100
For a package worth $ 750 of declared value, the shipper have to pay additional fee of $2.45 and he can be reimbursed only submitting a claim including a proper proof of value, and sometimes lengthy investigation
On the other side insurance is a necessary customer service: One of the major carriers admits to losing or damaging 10,000 packages every shipping day