subject: When Filling Out Courier Paperwork, What Is Declared Value? [print this page] Shipping forms are usually pretty straight forward, and can be filled out with a little common sense. There are a few questions that some courier companies may need to ask though, which might not make sense to you if you haven't had to fill out that kind of paperwork before. For instance, some people aren't sure what their Bay Area courier service is asking for when they request the 'declared value' of a shipment.
The 'declared value' isn't really all that complicated, but there are a few things that make it a little different than the more straight forward items that you might have to fill out on a shipping form. The declared value is really just what you attest the value of your shipment to be. This is a number that the courier company requires for insurance purposes, in case something happens to cause damage to your package and you need to make a claim. The reason it can get a little confusing though, is because of something which is known as the 'maximum declared value'.
The maximum declared value is the most that you can say that your product is worth on the form, even if it is worth more. This might not appear to make sense at first, but the logic comes because this figure is one that is used for insurance, not simply for declaring the value of your product as might be done for tax purposes.
The reason there is a maximum declared value is because this is the absolute most that the insurance company will pay out if your products should become damaged. This is an important figure for you to know, because if your goods are worth more than that maximum declared value, you have an insurance problem that you will need to solve.
The question at that point becomes whether or not you need to obtain additional coverage for your shipment. This is a judgment call in most situations, and will depend on how much more valuable your shipment is than the insurance that is provided. Obviously, if the difference is very little or not much more than the cost of extra insurance, than it is likely not worth the cost. If you do need additional insurance, you may have the option of purchasing it with the courier company, or you may have to get a policy from your own insurance carrier.
