subject: On Shipping Forms, What Is Declared Value? [print this page] Whenever you ship something with a courier service, there is always a certain amount of paperwork that you are going to be required to fill out. Usually, this work isn't that onerous, and just includes simple questions like where you are shipping to, when you want the package picked up and so on. However, you will also be asked to provide a description of the package that you are sending, including what is called a declared value, and this is something that has been known to confuse certain shippers in the past.
Declared value is in fact just what it sounds like. It is the value that you are claiming on the packages that you are trying to ship. This is a figure that is used for insurance purposes, rather than customs purposes, which is an important distinction. When you're shipping internationally, you must provide a commercial invoice which states the true value of the goods so that you can pay all of the applicable taxes and fees on the shipment.
The declared value is instead the amount that you will claim if the package is damaged. The reason that this is often a different number is that insurance policies that are held by couriers all have a maximum declared value. This is the most that they will pay out on a given package if it is damaged. So, if your package is worth more than the maximum, then you would simply put the maximum amount in the declared value form in most situations.
If there is a large disparity between the maximum declared value that your courier provides you with and the actual value of your shipment, then you may have to start looking into other insurance options for your package. There are ways that you can buy your own insurance which goes beyond that which is originally offered by the courier company. If you feel that your goods are too at risk with the current policy, then this is something that you should talk to both your insurance agent and your courier company about.
The reason you should talk to both parties is because both may in some situations have options for you in terms of additional insurance. This is just like getting a quote on any product you are buying for your business. By addressing more than one provider, you give yourself a better chance of finding the best possible deal on a product that you require.
