Oh ... so THAT'S how it works!

[Thumper]

I shipped two packages today with FedEx (eBay sales). One sold for $65 and the other sold for close to $300. Since FedEx automatically insures their packages up to $100, I only purchased extra insurance for the $300 package. When I dropped the packages off at the shipping center, they slapped a red label on one package (the $300 one), but added nothing to the other package. I asked the clerk what the tag was for and she said it's to mark it insured.

Ok, now my question is ... should it really make a difference? I mean, if it has no red tag, does that mean the carriers can toss it around like a football? A red tag means handle with care 'cause if'n ya' breaks it, it'll cost us lots'o money? The standard shipping tag shows the amount of insurance. I don't get it.

[Nandy]

The real question is, Why should you insure your package to protect you against their employees carelessness and slimy hands? In my book if the package is broken, damaged or lost is their fault, why are you paying for that?
Pet peeve of mine...

[Thumper]

That's always been a pet peeve of mine too Nandy. Why should I have to pay in case someone else doesn't do their job correctly? But, I suppose that's how the insurance game works.

[DeputyDog]

The insurance isn't just in case an employee throws the package around just take it. I've worked several crashes involving UPS or FedEx trucks where the cargo got damaged. Thump, I'm sure in your time driving truck, you saw several crashes where semi cargo was strewn all over a highway or caught fire in the crash.

[Thumper]

I guess it's like any other insurance Deppity. If I hire a tree trimmer, I hire a pro and make sure he's fully insured. If I hire some jack-leg off the street who has a chainsaw in his trunk, I know my homeowners insurance carrier will probably be sued if he falls out of a tree and breaks his neck.

Down here, we have to pay for "uninsured motorist coverage" which gripes my ass. It's ILLEGAL to operate a motor vehicle without insurance, yet I have to pay for some asshole who chooses to drive without it.

As for the truck crash, our company had cargo insurance as most any legit transport firm would carry IMHO. Again, you can hire a discount firm with no insurance (like my above scenarios) or a legitimate company who's fully insured. I'd think the frigging Post Office, FedEx and UPS would carry cargo insurance since that's basically ALL they do ... transport cargo!

This is from a commercial carrier insurance firm:

How Does Commercial Truck Insurance Work?

Companies offering commercial trucking insurance have a variety of specialized options to choose from. You need coverage for every possible scenario in which your truck could be involved, without increasing the price to an unaffordable amount. In addition to basic coverage, the trucker who transports cargo on behalf of customers needs commercial auto liability, which provides coverage for bodily injuries and damage to the property of others. Cargo insurance covers the loss or damage of the cargo, and the cost depends on the type and value of the cargo.

[LJ3]

Seems like a red sticker on a package would indicate it has something of more value in it than other packages. Not the smartest thing in the world to do if you axe me.

[Thumper]

I agree ... but my question is, why mark it in the first place? It gives me the impression they're saying "Don't treat this package as shitty (shitily? ;)) as you do the others!"

[DeputyDog]

I see your point and I didn't think about the cargo insurance. I guess they are just trying to recoup their cost for that.

[Thumper]

Yeah, I suppose so, but my main question was why they mark a package with higher insurance coverage in the first place? The only thing I can think of is a "red flag" for the carriers to be more careful with that particular package. The way I feel about it, ALL packages should be "handled with care" regardless of value.

[Chicken Dinner]

I wouldn't be surprised if a company the size of FedEx self insures on this stuff, or has their own captive insurance company, for anything other than catastrophic or really high dollar losses. The value of up to $100/package is built into their standards rate. The monies paid for additional coverage may go into some sort of reserve fund to pay claims. Just like any business, they pass it along to the customer because they can.

[Thumper]

Actually, that's the way I was figuring it CD ... it just makes economic sense. But again, my only real question is why it was marked in the first place? The only way I see it is, they're telling the carriers it's ok to throw my $65 package across the room ... but be careful with my $300 package. Personally, I don't want EITHER of them broken.

[LJ3]

I think the red sticker is more so you can feel like your package is "special". Kinda like you, jimmy :)

[Thumper]

Kisses!

http://2.bp.blogspot.com/-c9HnfaS__cg/U507ALHXOII/AAAAAAAAJXI/Ds6cndYSOUc/s1600/surprise-kiss-emoticons.png

[Nandy]

But again, my only real question is why it was marked in the first place?

I have the feeling you know the answer to that, give this package extra care.