|Sun Feb 23 2014 22:21:07|
Does the USPS Deliver When It Comes to Insurance Claims?
By: Ina Steiner
Online sellers have long debated the value of paying for insurance, no matter which shipping carrier they use, and a new lawsuit brings the issue to merchants' attention yet again.
An Idaho man has sued the USPS for denying his insurance claim despite the fact the agency acknowledged it was unable to find the items that had been inside his package. In this particular case, it's actually the buyer who filed the lawsuit after he purchased tractor parts from an online site a year ago.
The reason for the denial was that the buyer had waited too long to file the claim, but the plaintiff said he filed the claim upon receiving official notice from the USPS that it couldn't find his item.
A typical complaint from sellers is when they discover that the items they insure are simply not covered - often after having paid insurance for many such items over long periods of time. One eBay seller decided to fight eBay in court over its ShipCover insurance, but that case has not fared well for the plaintiff.
Another complaint - often sellers say buyers don't cooperate with them in cases where items are damaged in shipment and they try to file a claim with the insurance company. Here's an example that shows how costly that can be.
But in this most recent lawsuit filed this month, the buyer said he was unable to get the seller to cooperate - and in fact, the seller's website is currently not loading.
Some sellers forgo purchasing insurance and instead, they "self insure."
The full story about this new lawsuit against the USPS is available in Monday's EcommerceBytes email newsletter. If you have experience purchasing insurance for packages you send, let us know if you've had any good or bad experiences. Read the story and weigh in with your thoughts and opinion.