Did USPS Priority Mail previously include some insurance at no charge?

JC in SC

JC in SC

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Long story short, I recently sent out a package that was evidently damaged in transit, all contents lost and the empty box delivered to the buyer. At some point in the past, I developed the impression that USPS Priority Mail flat rate boxes included some minimal amount of insurance. I seem to recall a statement from the PO that "flat rate boxes include $xxx of insurance, would you like to add more" or something to that effect. I don't sell a tremendous volume. In the past year or two, I've gone to shipping online via Paypal instead of trekking to the PO, so either I was misinformed altogether initially or missed the change in policy. The local PO said that flat rate never included insurance, but that doesn't sound right.

Also, PayPal's "Seller Protection" is a joke. I thought it was supposed to protect the seller against items not received by the buyer, but I'm having no luck getting anywhere with them. Also interesting is that when they refund the buyer, the refund the full amount (as it should be), but they debit your account the full amount as well (i.e. PayPal still gets their fee). So now I'm out of the goods shipped, the ~$12 for the flat rate box and the $3.20 PayPal fee. I can handle the $115 loss, but I'm not happy about it.

Lesson learned: Always use insurance.
 
I had a scare a month ago where the PO said they delivered but the customer never received the package. It was eventually found and delivered.

Now I offer the chance for the customer to buy insurance. Since it's only a few $ extra, about half my customers buy it. With this, I give a disclamer that if no insurance is purchased, then once the knife has left my hands and I give out the tracking number, then it's all on the customer and I am no longer obligated.

For your question, I don't think they had insurance, but did make you pay more to insure any items that cost over $200.
 
As far as i know usps didnt offer free insurance. I use click and ship online and you get free tracking but thats it. I think ups offers free ins. on packages up to 100.00 . Sorry your package got messed up. I know its frustrating.
 
The only insurance that is included that I know of is flat rate international and only to some countries.
 
PayPal anything sucks for starters. For instance,if you are a buyer and bought a knife,camera,flashlight,watch, whatever, all a seller has to do is ship you a box

with a rock in it with signature required. Once it is signed for,the seller is free and clear.PERIOD! You open the box to find it full of junk, there's not a damn thing

you can do about it.If I receive anything via Ebay with sig. required,I open it while the postal carrier is there,immediately.

When sending out an item of any value, the box is sealed at the P.O. in front of the clerk for added protection.All packages are sealed with tamper proof packing

tape,top,sides and bottom.You'd be surprised at the condition of some of the boxes I receive.


I also insure everything I send out. As far as I know,the USPO does not offer a basic amount of insurance. I know that certain other carriers like FedEx offer

a base amount of 100.00 coverage but additional coverage is at a cost.

I agree with your conclusion:Always use insurance.

It's relatively inexpensive and gives you some peace of mind.
 
I don't think they've ever offered and insurance on flat rate, or any other form of shipping. The only thing I know of that changed is that a buyer no longer has to sign for a package if insured for under $200. You need to send with SC if under $200, and you want them to sign for it.
Also, the PP protection only covers the seller if the buyer signs for it, and then claims he didn't get it. Or thats how I read it.



jawilder said:
Now I offer the chance for the customer to buy insurance. Since it's only a few $ extra, about half my customers buy it. With this, I give a disclamer that if no insurance is purchased, then once the knife has left my hands and I give out the tracking number, then it's all on the customer and I am no longer obligated.
Click to expand...

Insurance is for the seller, not the buyer. If they don't get your package they will win a PP, or CC dispute. I would suggest you use insurance for your protection, and not theirs.
 
jawilder said:
I had a scare a month ago where the PO said they delivered but the customer never received the package. It was eventually found and delivered.

Now I offer the chance for the customer to buy insurance. Since it's only a few $ extra, about half my customers buy it. With this, I give a disclamer that if no insurance is purchased, then once the knife has left my hands and I give out the tracking number, then it's all on the customer and I am no longer obligated.

For your question, I don't think they had insurance, but did make you pay more to insure any items that cost over $200.
Click to expand...

I won't do business with someone on these terms. It doesn't conform to Bladeforums policy, either.

The buyer is obligated to get the money to the seller.
The seller is obligated to get the item to the buyer.

If the item is lost in transit, it is the seller's responsibility to replace it or refund the money.
THAT'S what insurance is for. When everything else goes wrong, the shipper will reimburse the insured seller for the lost item.
 
I dont remember USPS ever having the insurance included. I think UPS did.
 
From: USPS FAQ's

Insurance Coverage by Mail Class

•Express Mail®

•Up to $100 insurance coverage included in price of postage with the following limits:
•$100 for merchandise
•$100 for document reconstruction
•$15 for cash

•Additional insurance coverage may be purchased for up to $5,000 for merchandise only

Note: Use of Waiver of Signature will void insurance indemnity

•Priority Mail®
•Insurance may be combined with Parcel Airlift Service (PAL), Signature Confirmation™ or Special Handling
•Available for merchandise only (i.e. you cannot insure correspondence)

•First Class Mail® and First Class® Package Service
•Same as Priority Mail

•Package Services
•Available for merchandise only (i.e. you cannot insure correspondence)


So you're all right. Just depends. And considering the former AA baggage handlers working their sorting mail, its cheap.

Larry
Tinkerer
 
A lot of changes at USPS occurred yesterday with the rate increase. I can not be 100% sure, but from what I can tell, no Priority comes with insurance of any amount any more, though Priority International (not Flat Rate) did prior to yesterday. Express Mail insurance for merchandise was increased from $100 to $200 @ no additional charge, however Express Mail rates did go up, so.....no additional charge?

The best news may yet to come, but may involve First Class International and Priority Flat Rate International parcels being tracked past customs!!! Previously, the tracking on these would stop with the last scan point in the US (Chicago ISC for me). Printed a label today for FC going to Canada and it had "E-Delcon" marked across the top of the label, which I interpreted as e-delivery confirmation. The tracking past customs would make sense, considering that FC International rates have in many cases, doubled+ and Priority Flat Rates also had a sharp increase in price.

Revision - USPS First Class International currently will come with Delivery Confirmation for parcels being delivered to Canada for now. The same also applies to USPS Priority Flat Rate parcels.

"New for January 2013, free electronic USPS Delivery Confirmation International offers scan events for customers using select software or online tools. E-USPS DELCON INTL is optionally provided for First-Class Package International Service to select destinations. It will be available only to Canada to start with."

- (http://about.usps.com/postal-bulletin/2012/pb22352/html/kit.htm).

I know that this revision has nothing to do with the OP's question, but I did refer to it in my original reply and felt that an update was necessary for clarification.

More directly related to the OP's question (but not so much) -

"Priority Mail International® Insurance*

Uninsured Priority Mail International parcels include indemnity against loss, damage, or missing contents. Coverage is calculated based on the weight of the parcel or the value of the contents, whichever is less. You can purchase insured mail service if available for an additional fee. Additional insurance limits vary by country. When international insurance is purchased, it replaces indemnity coverage. Individual country prohibitions and restrictions apply.

Find out what you can send internationally ›
Learn how to file an international insurance inquiry ›

*Indemnity and insurance is not available for Priority Mail International Flat Rate Envelopes or Small Flat Rate Priced Boxes."

(https://www.usps.com/ship/insurance-and-extra-services.htm?)

There is no insurance included with domestic Priority parcels and I don't recall any domestic parcels, other than Express Mail, having insurance included in the purchase price. I could be wrong.

With regards to Paypal's "Seller Protection", it only applies in very limited circumstances. The best "seller protection" you can get, is to handle the situation as if you were the buyer. In most cases, you will want that buyer to come back to you for their next purchase. You will get fraudulent sales on occasion and those people already know how to work the system and the best way to protect against it is to be vigilant which, at best, only works sometimes.

Hope this helps,
Rob
 
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THe USPS insurance policy, from all my experience, has never, ever, included Priority Mail insurance in any form.

You may purchase extra. You know this now.

USPS Express Mail has had a default of $100, and when I do this, I have to fill in that amount on the web form. For all I know you may be screwed if you don't do that ahead of time. Not sure.

Fortunately for me, I live in a private little cul-de-sac, and in 10+ years of shipping as a home business, I have never had a single loss. Thousands of packages from all the providers, including USPS Priority.

My insurer: Collectibles Insurance, has a supplemental policy for knives, for both my shipments and while in my possession.

They will only cover $400 if Priority Mail is unsigned. They will cover up to $2000 if it requires a signature. Not any $$ more for Priority.

Express Mail and FedEx are insured up to $15,000 in my policy. UPS only $10,000. All with a direct signature. I often ship by Express, simply because the knives are worth far more than $2000. My experience shows me I don't need to, but that's taking a risk I can't afford to pay if things went awry.

ANY International shipper premium delivery is still only $5000 through them. They can't trust out of the country handling either.

Just an FYI on how this works from my end.

Coop
 
SharpByCoop said:
THe USPS insurance policy, from all my experience, has never, ever, included Priority Mail insurance in any form.

You may purchase extra. You know this now.

USPS Express Mail has had a default of $100, and when I do this, I have to fill in that amount on the web form. For all I know you may be screwed if you don't do that ahead of time. Not sure.

Fortunately for me, I live in a private little cul-de-sac, and in 10+ years of shipping as a home business, I have never had a single loss. Thousands of packages from all the providers, including USPS Priority.

My insurer: Collectibles Insurance, has a supplemental policy for knives, for both my shipments and while in my possession.

They will only cover $400 if Priority Mail is unsigned. They will cover up to $2000 if it requires a signature. Not any $$ more for Priority.

Express Mail and FedEx are insured up to $15,000 in my policy. UPS only $10,000. All with a direct signature. I often ship by Express, simply because the knives are worth far more than $2000. My experience shows me I don't need to, but that's taking a risk I can't afford to pay if things went awry.

ANY International shipper premium delivery is still only $5000 through them. They can't trust out of the country handling either.

Just an FYI on how this works from my end.

Coop
Click to expand...

Good info Coop. Thank you.
 
Esav Benyamin said:
I won't do business with someone on these terms. It doesn't conform to Bladeforums policy, either.

The buyer is obligated to get the money to the seller.
The seller is obligated to get the item to the buyer.

If the item is lost in transit, it is the seller's responsibility to replace it or refund the money.
THAT'S what insurance is for. When everything else goes wrong, the shipper will reimburse the insured seller for the lost item.
Click to expand...

Esav,
You are 100 % percent on the money, a lot of our members need to read the rules

Insurance is for the seller, not the buyer

The seller is the only one that can file a claim & collect the insurance

The insurance is to protect the seller incase the buyer never receives the item

There for why should the buyer pay for it when its protecting the seller
 
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There's a lot of sellers and even one dealer I know of here that will state they are not liable for goods not delivered, unless the purchaser buys insurance.

In fact this dealer told my Dad when the knife he bought arrived without any insurance markings, (after he'd paid the extra insurance fee to the dealer) that the fee was paid to the dealer and the dealer would only replace a knife if it was paid, in the event the package was lost. (in other words too bad if it's lost and you don't pay the dealer the extra fee) My Dad stated that he'd paid with paypal and he certainly knew paypal would hold the shipper responsible.
 
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The USPS started the new tracking system yesterday. That should help. You can now look online to see were your package is.....or was.
 
I always could look online and see where my package is or was, with delivery conformation, that is as long as it had been scanned.
 
jill jackson said:
In fact this dealer told my Dad when the knife he bought arrived without any insurance markings, (after he'd paid the extra insurance fee to the dealer) that the fee was paid to the dealer and the dealer would only replace a knife if it was paid, in the event the package was lost. (in other words too bad if it's lost and you don't pay the dealer the extra fee) My Dad stated that he'd paid with paypal and he certainly knew paypal would hold the shipper responsible.
Click to expand...

In other words, the dealer claimed he used Liu Kang-style self-insurance. :p
 
jill jackson said:
There's a lot of sellers and even one dealer I know of here that will state they are not liable for goods not delivered, unless the purchaser buys insurance.

In fact this dealer told my Dad when the knife he bought arrived without any insurance markings, (after he'd paid the extra insurance fee to the dealer) that the fee was paid to the dealer and the dealer would only replace a knife if it was paid, in the event the package was lost. (in other words too bad if it's lost and you don't pay the dealer the extra fee) My Dad stated that he'd paid with paypal and he certainly knew paypal would hold the shipper responsible.
Click to expand...

Esav Benyamin said:
In other words, the dealer claimed he used Liu Kang-style self-insurance. :p
Click to expand...


Esav,
That one made me spray my coffee everywhere........
 
I think that was actually "the straw that broke the camel's back" and led to him getting banned.

I don't know why people make trouble for themselves by even bringing up these separate charges. They are a cost of doing business. Price your knife, add in shipping and handling costs, add in insurance, total it all up and post that as your asking price "PayPal and insurance and Deliv. Confirm. free!"

I think it's funny when someone drops their asking price when the knife doesn't sell, but they still ask 3.5 or 4% for PayPal on top of that -- which is less than the price drop. Why bother? Lump sum: send me this much money and I put your name on the label of this knife I have boxed up ready to go.
 
Esav Benyamin said:
In other words, the dealer claimed he used Liu Kang-style self-insurance. :p
Click to expand...

They still do that charge extra for insurance on check out and the package has no insurance tags when delivered. It's a fee the buyer pays to the seller and the seller agrees to make good in case of loss, without paying it they said too bad if it goes missing. But, the thing is this dealer takes paypal, so they can't pull that you didn't pay me insurance too bad deal when you pay with PP.
 
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