Should you Insure Items When Shipping Craft Items?

Whenever you are shipping items to a customer, you should always get insurance, no ifs ands or puts. Many crafters make it the buyer's choice, stating that the seller is not responsible for items that go astray during shipping. But this is a big mistake, and even if you inform the buyer of this policy, you will still be on the hook for the full purchase and shipping amount should it go missing.

When a customer declines insurance, if he or she has paid with their credit card, they can simply inform their credit card company that they want a chargeback for non-receipt of goods, and suddenly, you are out both the product and the money when their credit card charge is reversed (and legally, it would be, because the customer never received the goods he or she paid for).

What can you do to prevent a business loss such as this one? There are several ways to go about this.

First, you can state a shipping and handling charge that includes insurance (do not separate them, because that will prompt money saving customers to ask for shipping only).

If a customer asks for no insurance, simply reply that insurance is including in the shipping and handling as a company policy. Be polite, yet firm.

What if you could lose the sale over amount of shipping? If you decide to ship without insurance, always remember that you will be liable for the full purchase amount (including shipping) should the customer decide to get a credit card chargeback. And depending on your merchant account, you will likely be on the hook for a service fee for the reversed charge as well. And too many reversals could also cost you your merchant account.

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