Self-insurance

How does it apply to shipping?

Instead of paying a provider or insurer, a store sets aside money to cover lost, damaged and stolen orders. With shipping protection, that money comes from the optional fees customers pay at checkout.

Is a self-funded protection program insurance?

Not in the regulated sense. A store running its own program is making a promise to its customers under its own rules, not selling an insurance policy. That is why careful stores call it shipping protection or order protection. Sam Shipping Protection is not an insurance provider; it gives stores the tools to run their own program.

What makes it work?

Pricing the fee from your real claim rate, keeping a buffer for bad months, and watching your loss ratio.

Example

A store collects $1,500 a month in protection fees and pays $340 in claims. The rest stays as revenue and buffer.

Read self-funded vs third-party shipping protection, the shipping insurance guide, and see Sam Shipping Protection.