How Is Shipping Insurance Calculated?

Shipping insurance is calculated in $100 increments, called Declared Value Units, or DVU’s for short. To figure out how much insurance on any package would cost, simply multiply the rate of insurance that you pay per DVU, by the value of the package that you intend to ship. An item that you are looking to insure for $300, would be insured at 3 DVU’s. If you were to pay $0.45 per DVU, shipping insurance on a package holding a value of $300, would cost $1.35. A DVU is based on a whole unit of measurement, meaning a package insuring a value of $250, would count as three DVU’s.

If you have further questions about how shipping insurance is calculated, or how it may benefit your business, please do not hesitate to reach out to us.