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RS Package Insurance

FULL-COVERAGE PACKAGE
AND CARGO INSURANCE...
INCLUDING YOUR PROFIT!

 

Full-Coverage Package & Cargo Insurance

Properly covering your customers’ shipments for loss or damage is an integral part of the service you provide. It protects both you and your customer while representing a significant profit opportunity for your store. The best means of protecting your customers’ (and your) financial interest is to purchase full coverage package/cargo insurance.

RS Package Insurance is underwritten by Marsh, the world’s leading cargo insurance broker and risk adviser. Marsh has over 24,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Through the RS Package Insurance program, Marsh is now offering full coverage package/cargo insurance to the Retail Shipping industry at highly competitive rates and with a value proposition that revolutionizes the way shipments are covered.

The best Choice For Covering Your Customers' Shipments

Purchasing “limits of liability” or “shipment value” protection from the carriers is not the same as full package and cargo insurance. Even if additional insurance or a declared value is requested from the carrier, certain Terms of Carriage and/or bill of lading/airway bill limitations may still apply, such as:

  • Acts of God (flood, earthquake, hurricane, tornado, etc.)
  • Act or fault of the shipper or public authorities; and rust, oxidation, or discoloration
  • Terrorism, strikes, riots, and in some jurisdictions theft by hijacking
 
RS Package Insurance provides the following:
  • The policy protects your cargo while in transit against “all risks” of physical loss or damage.
  • Shipments are insured for the full value of the shipment including all transportation charges AND your markup on the transaction, AND any packaging materials AND any packaging charges, so you are made whole. Coverage purchased through the carriers does not cover ANY of your packaging charges nor does it cover ANY of your freight charge profits.
  • Coverage includes exposures not generally covered by legal liability or shipment value protection, including perils such as Acts of God, terrorism, strikes, riots, and civil commotions.
  • Coverage includes transit by other carriers/subcontractors involved in the shipment, and provides protection from door to door, including return shipments.
  • Shipments are insured for damage or loss  while the shipment sits in your store waiting for the the carrier pickup.
  • You do not need to prove fault on the part of the carrier nor do you need to file any claim against the carrier. This can save months of time as the claim is paid on submission of documentation, and not based on proof of fault.
  • Losses are paid quickly and efficiently.
  • Claims are resolved regardless of whether the carrier is going to pay or not.
  • RS Package Insurance Coverage premiums cost significantly less than carrier coverage, so providing full insurance to your customers not only provides superior coverage, but also represents a great new profit center for your store.
  • This program allows you to offer real insurance to your drop-off shipment customers—a genuine, need-based new approach to allow you to make significant profit from drop-off shipments.

This new program is revolutionizing package and cargo insurance for the Retail Shipping Industry. Sign up for this program today and start covering your assets the right way.

 

THE UNDERWRITER

Liberty International Underwriters (LIU), a leader in the transportation industry, underwrites the RS Package Insurance Program. LIU is licensed in the United States and Canada and are able to write ocean cargo and inland transit all over the world.

ABOUT MARSH

Marsh, a global leader in insurance broking and risk management, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. It has approximately 25,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. Marsh Canada Limited has 1,100 employees and offices in 13 cities across Canada. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital. With 52,000 employees worldwide and annual revenue exceeding $10 billion, Marsh & McLennan Companies is also the parent company of Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; Mercer, a global leader in human resource consulting and related services; and Oliver Wyman, a global leader in management consulting. Follow Marsh on Twitter @Marsh_Inc.

Full-Coverage Really Means "Full-Coverage"

Every aspect of this program is superior to “limits of liability” and “shipment value” protection offered by the carriers. Even other 3rd party insurance products don’t compete.

Coverage

The RS Package Insurance Program is designed to protect and meet your needs. Some of its coverage benefits include:

  • The policy protects your cargo against “all risks” of physical loss or damage while in transit.
  • Coverage includes exposures not generally covered by legal liability protection, including perils such as Acts of God, terrorism, strikes, riots, and civil commotions.
  • While shipments are at your physical location, they are protected against loss or damage that may occur prior to the carrier receiving these insured drop-off shipments.
  • Shipments are insured for the full value of the shipment including all transportation charges and your mark-up on the transaction. In the event of a loss or damage you will be made whole (coverage purchased through a carrier does not cover the loss of your profits nor does it cover any part of your packaging charges).
  • Coverage includes transit by other carriers/subcontractors involved in the shipment, and provides protection from door-to-door, including return shipments.
  • You do not have to file any claim against the carrier and wait for their decision as to whether or not they will accept liability.
  • You do not need to prove fault on the part of the carrier (this can save months of time as the claim is paid on submission of documentation and not based on proof of fault). 
  • The RS Package Insurance Program allows you to offer insurance to your drop-off customers—with a significant profit margin. Now, all those drop-off customers can be viewed as a real revenue stream for your store—this is a game-changer.
Insurance Pricing

The pricing on insurance offers a significant savings over the more limited legal liability coverage provided by the carriers.

The insurance pricing is based on the actual value of the goods and not on “block” pricing. Therefore the cost is exactly what it should be and not based on a range.

Rates and terms are subject to change. Certain countries may be restricted from insurance coverage. Refer to policy for a full list of restrictions and exclusions.

Claims Handling

Claims under this program are NOT dependent upon carrier approval. Other coverage mandates that the carrier approve any claims made.

Marsh, the insurance broker, has placed the RS Package Insurance program with the insurance company Liberty International Underwriters (LIU), a leader in cargo insurance and a high quality service provider. As the insurance company, LIU insures the risk and pays the claims.

Marsh and LIU work diligently to ensure that any and all claims are serviced, processed and handled quickly and efficiently. LIU claims service is client-focused, working with the RS Associate stores to deliver satisfaction to you, their customer.

Protecting Your Financial Interest

You have a vested interest in the shipment arriving safely. Loss or damage in transit has the potential to impose a financial loss and impact your client relationships. The best means of protecting all your interests is to purchase full coverage cargo insurance through the RS Package Insurance program.

Purchasing “limits of liability” or “shipment value” protection from carriers is not the same as full coverage package insurance. Even if additional insurance or a declared value is requested from the carrier, certain Terms of Carriage and/or Bill of Lading/Airway Bill limitations may still apply, such as:

  • Acts of God (flood, earthquake, hurricane, tornado, etc.)
  • Act or fault of the shipper or public authorities; and rust, oxidation, or discoloration
  • Terrorism, strikes, riots, and in some jurisdictions theft by hijacking

Coverage Guide

Note: Failure to follow any listed conditions below may result in a claim being denied.

Limit of Liability
  • $50,000 per shipment
  • All shipments valued at $10,000 or higher must be pre-approved by the Marsh program administrator, prior to shipment.
  • Any shipment valued at $1,000 or greater MUST be sent with Signature Required for delivery in order for insurance coverage to be valid. This includes claims for loss and damage--no exceptions. Statistics show that shipments requiring a signature are handled better by delivery drivers and therefore are less likely to incur damage. 

    NOTE: Carriers may provide “free” signature service on certain items that have a Declared Value of $500 or higher. This “free” service cannot be used with RS Package Insurance because no declared value is submitted to the carrier when third-party insurance is utilized. Example: When using third-party insurance, FedEx does NOT provide free signature service for packages valued at $500 or greater.
    You MUST pay for Signature Required service on all shipments covered for $1000 or more.
Excluded Commodities

These commodities will not be insured UNDER ANY CIRCUMSTANCES.

  • Live Plants or Animals (including reptiles, snakes, birds, insects, etc.)
  • Bullion, Currency, Money, Securities, Accounts, Bills, Deeds, Evidence of Debt, Notes, Stamps, Gift/Phone cards/Tickets (such as Movie, Concert, Athletic event, etc.), Documents
  • Precious Metals (gold, silver, etc. in forms of ingots, bullion, coins, etc.)
  • Human remains (including ashes)
  • Medical Samples and/or biological products/diagnostic specimens, blood, blood products, plasma, embryos, human or animal specimens or tissues, urine, bodily fluids.
  • Ammunition and/or Explosives of any type
  • Counterfeit, Illegal or Pirated goods or material
  • Alcoholic Beverages
  • Dangerous Goods / Firearms
  • Industrial diamonds/carbons/ Gems, Gemstones
  • Tobacco products; and
  • Any item(s) the carriage of which is Excluded by any law, regulation or statute of any federal, state or local government to or through which the shipment may be carried.
Special Care Commodities

The Special Care commodities require extra precautions and conditions that must be fulfilled:

* Failure to use generally accepted standards and best practices for packaging including; shipping containers, cushioning materials and packaging techniques may result in claims denial for inadequate packaging.

JEWELRY / ARTWORK, ANTIQUES AND COLLECTIBLES

  • A commercial sale receipt/invoice or Independent proof of value (replacement) must be available upon request
  • Shipments must be professionally packaged *
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

FURS, STATUARY AND TAXIDERMY

  • A commercial sale receipt/invoice or Independent proof of value (replacement) must be available upon request
  • Shipments must be professionally packaged *
  • No coverage for infestation or degradation of goods due to inherent vice
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

PERISHABLE ITEMS

(e.g. foods, foodstuffs, items requiring temperature control, etc.)

  • Items must be packaged appropriately for transit *
  • Shipments must be sent through Express Air Service
  • No coverage for spoilage or degradation of goods due to delays
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

PRESCRIPTION DRUGS

  • Items must be packaged appropriately for transit *
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

PERSONAL EFFECTS (AND HOUSEHOLD GOODS)

  • A commercial sale receipt/invoice or Independent proof of value (replacement) must be available upon request
  • Packing must be reviewed and approved by the RS store or packed by the RS store *
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

ELECTRONICS
(such as TVs, Stereos, Home Theaters/Surround sound systems, Laptops, Computers, Tablets, Video Game consoles)

  • A commercial sale receipt/invoice or Independent proof of value (replacement) must be available upon request
  • Packing must be reviewed and approved by the RS store or packed by the RS store *
  • Items packed in unmarked / no advertising boxes
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles
Coverage Restrictions

Coverage terms are based on all risks of physical loss or damage to the goods, and specifically exclude loss or damage due to:

  • Loss or damage due to delay (lost earnings, loss of potential income, etc.)
  • Inherent vice (item that due to its construction or nature can’t be readily shipped without damage no matter how well it is packed.) )
  • Insufficiency or unsuitability of packing or preparation
  • Radioactive contamination
  • Gradual deterioration (e.g. gradual wear and tear or a machine over time, rust, oxidation, discoloration, etc.)
  • Pre-existing damage
  • Interruption of business or consequential loss of any kind, such as loss of use or market for the good(s).

See the policy wording for a full list of restrictions and exclusions.

Valuating Your Goods

Valuing your goods for insurance purposes is extremely important. It identifies the full potential risk to the insurance company and allows them to forecast and analyze the risk and losses.

Insurance against damage or loss is rated based on the FULL VALUE of the shipment, not the POTENTIAL damage.

If the goods are NOT insured for the full value, they may be subject to a co-insurance penalty. Co-Insurance applies if a shipment is not insured for full value then the insured may be considered a co-insurer and could assume a proportionate part of the risk and claim.

Used goods should be insured at Actual Cash Value (ACV). ACV means current depreciated value for the goods (not new replacement cost).

Delivery

We strongly recommend that all goods valued in excess of $500 be signed for by the receiver. In the event of loss receiver will be required to attest in writing to non-delivery of the goods. Goods signed for by receiver will be considered delivered.

Any shipment valued at $1,000 or greater MUST be sent with Signature Required for delivery in order for insurance coverage to be valid. This includes claims for loss and damage--no exceptions. Statistics show that shipments requiring a signature are handled better by delivery drivers and therefore are less likely to incur damage. 

NOTE: Carriers may provide “free” signature service on certain items that have a Declared Value of $500 or higher. This “free” service cannot be used with RS Package Insurance because no declared value is submitted to the carrier when third-party insurance is utilized. Example: When using third-party insurance, FedEx does NOT provide free signature service for packages valued at $500 or greater.
You MUST pay for Signature Required service on all shipments covered for $1000 or more.

 

Receiving

It is highly recommended that, when possible, the receiver should review the goods for external damage prior to signing a clean delivery receipt/waybill. They should inspect the condition of the package(s), and note if there is any damage or shortage/items missing at time of delivery. In the event of loss or damage, an inspection of the shipment including the packaging may be required.

If a shipment is damaged, the receiver must retain all packaging until the damage claim is resolved.

Rates & Minimums

The RS Package Insurance is priced very aggressively (see the Carrier Comparison below) and positions RS Members to not only provide superior coverage, but as a profit center it also helps to earn thousands of extra dollars every year.

The program has two price structures; one for High-Risk (Non-Certified) customers and one for Low-Risk (Certified) customers. New applicants will be initially assigned to the Low-Risk (Certified) pricing. Any customer that is deemed to be high-risk (based on claims history) is subject to be moved to High-Risk (Non-Certified) pricing.

Insurance rates and minimums are shown below.

Note: Rates are based on covering the full value of the transaction (contents and all shipping, packaging and labor costs—including your profit). When you purchase “limits of liability” or “shipment value” coverage from the carriers or other 3rd party insurers, you must pay a minimum for items valued at more than $100, and then purchase coverage in $100 increments, so you may be paying for more coverage than you need, and still not protecting your own interests. With RS Package Insurance, the premium you pay is a percentage of the actual value so you never over-insure a shipment. (Note: minimum premium does apply to all shipments—see below.)

NOTICE: Prices listed below effective 11/15/2022
 
CERTIFIED (Low Risk)

Domestic Premium

International Premium

Minimum Premium per Shipment:

Rates

0.399%

0.399%

$2.70

 

For domestic shipments equal to or less than $634, the minimum premium will apply.
For international shipments equal to or less than $634, the minimum premium will apply

Note: The minimum premium charge applies to all covered shipments.

NON-CERTIFIED (High Risk)

Domestic Premium

International Premium

Minimum Premium per Shipment:

Rates

1.08%

1.08%

$5.45

 

For domestic shipments equal to or less than $589, the minimum premium will apply.
For international shipments equal to or less than $589, the minimum premium will apply

Carrier Comparison

FedEx

Shipments valued at $100 or less--$0. For shipments valued at more than $100, a $3.00 minimum applies. Additional coverage is sold at a rate of $1.00 per $100 value. Note: this covers ONLY the contents value and wholesale shipping cost

United Parcel Service (UPS)

Shipments valued at $100 or less--$0. For shipments valued at more than $100, a $2.70 minimum applies. Additional coverage is sold at a rate of $.90 per $100 value. Note: this covers ONLY the contents value and wholesale shipping cost

DHL Express (International Only)

Shipments with no stated declared value are covered at a rate of $11.34 per pound. Shipments needing more coverage are charged at a rate of $1.00 per $100 value with a minimum of $3.00

Getting Started is Fast and Easy

We’ve made the steps to activate RS Package Insurance in your store simple and quick:

1

You must be an RS Premium Member of RSA.

2

You must be a current PostalMate POS Software (ver. 10.5+) user. If you are not a current PostalMate user and are interested in learning more about PostalMate, click here.

 

3

Make sure you are logged in to your RSA account and then complete the form below. Follow any instructions provided to setup your system. For instructions on how to setup RS Package Insurance in PostalMate click here.

 

4

Once your RS Package Insurance account has been activated and you have set up your PostalMate system, you can begin covering your shipments.

Please Login To Apply

CLICK HERE to login in now.

Do I get free signature service from FedEx if I declare a value of $500 or greater?

What Is cargo Insurance?

Are there any monthly fees for RS Package Insurance?

What Is an "All Risks" Policy?

What Happens If I Under-Value a Shipment for Insurance Purposes?

How do I get approval to insure commodities that require pre-approval?

What Do I Do When I Discover a Loss or Damage to a Shipment?

What Should the Recipient do in the Event of a Claim for Loss or Damage?

Is a Valued Inventory List Required?

Why Do I Need War Risks Insurance?

How do I handle shipments that have a value that is less than or equal to the carrier's free declared value amount?

MINIMUM PACKAGING REQUIREMENTS

SMALL-PACKAGE CARRIERS

SMALL-PACKAGE CARRIER ENVIRONMENT

It's important to understand how the carriers handle goods as they move within their shipping system. The following applies to packages shipped by way of a small-package carrier (UPS, FedEx, DHL, USPS).

»

Packages may be stacked in any orientation including upside down.

»

Other packages weighing up to 150 lbs. can be dropped onto any side of your package.

»

Fragile packages are NOT handled any differently than durable non-fragile packages.

»

Items must be packaged so they can be dropped onto any side or corner of the package from the height listed below without causing damage to the contents.

 Package Weight Drop height 
 0 to 70 pounds  30 inches
 71 to 150 pounds  24 inches

 

    »

    Your package must be able to withstand having other packages stacked on top of your package. Examples of how much weight is allowed to be stacked onto your package are:

     

    Package Size Weight
    12 Inch Cube 200 pounds
    24 inch Cube 650 pounds

     

      »

      Shipping labels such as Fragile, Do Not Drop, Do Not Stack, This Way Up, Do Not Crush, etc. are of no use when shipping via a small-package carrier. In fact, industry best practices discourage use of such labels as they may result in the package being deliberately mishandled.

      CUSHIONING MATERIAL

      It is crucial that you select the proper cushioning material for the Size, Weight and Shape of the item you are packing.

      »

      On breakable/fragile items, you must use at least two (2) inches of appropriate cushioning material to protect items from each other and the walls of the box.

      »

      On fragile items such as electronics, glass, ceramics, and artwork, additional cushioning may be required. Consider double boxing; pack the item in one box and then pack that box into another larger box with the proper amount of cushioning.

      »

      Packing peanuts are NOT appropriate cushioning material. Packing peanuts normally are for void fill only. The only exception to this is when you are double-boxing an item. Packing peanuts can be used between the inner and outer box.

      »

      Air bags are NOT appropriate cushioning material. Air bags are for void fill only.

      »

      Bubble-wrap® is an acceptable cushioning material except when the weight of the item is too great for the bubble wrap to support. You should not exceed 0.3 pounds per square inch weight on the bubble wrap. Since a package can be dropped onto any side of the package, this weight limit applies to all sides of the package including the top and bottom.

      CARTON OR CONTAINER

      »

      Use a box strong enough to support the weight of the contents. Under no circumstances should you exceed the maximum gross weight limit printed on the box maker’s certificate. UPS and FedEx recommend a weight limit that is less than the maximum gross weight limit printed on the Box Maker’s Certificate. On single-wall corrugated boxes, UPS and FedEx recommend a maximum weight of 1/3 less than what is indicated on the box maker’s certificate. On double-wall corrugated boxes, they recommend a maximum weight of 20% less than what is indicated on the box maker’s certificate.

      »

      Reinforce package edges to protect from collapse.

        »

        Securely seal contents at risk of leakage.

        »

        Securely seal package closures and all seams with reinforced tape:

        LABELING

        »

        Include complete address information and telephone numbers on the label.

        »

        Consider putting an additional label on the inside of the package.

        NOTE: These requirements are just minimums and DO NOT replace the need for professional packaging training. Drop heights and stacking strength requirements listed above are from ASTM International standards.

        Recorded Webinars

        • Event
          Date Recorded
        • RS Package Insurance - Premium Supplier Webinar
          RS Package Insurance - Premium Supplier Webinar
          11/13/18
          Members Only
        • Myths & Misconceptions About Proper Packaging
          The Myths & Common Misconceptions About Proper Packaging
          10/25/18
          Members Only

        RS Package Insurance Resource Files


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