Startups Stack Exchange Archive

Does a company need a specific license to offer shipping insurance on sales from their website?

Say RRR LLC has a website selling fragile items. RRR LLC includes an option for shipping, to add on $1, if the product arrives broken, the cost will be refunded. This option would be backed by RRR LLC, who does not possess any sort of insurance writing license.

Can RRR LLC do this?

I’ve been searching for answers to this question and failing miserably, any direct answers or searching strategies are very appreciated.

Edit: This business is located in Colorado, USA, and ships to USA locations only.

Answer 3776

Call it a shipping warranty, not insurance. Customer purchase the shipping warranty for $1 and if it breaks you refund purchase price. Simple as that. Make sure your terms and conditions are clear and that you do not open your self up to any legal issues.

Example: We do our best to pack our products in such a way as to avoid any damage, however we are unable to promise that are products will arrive safe and sound. For this reason we offer a shipping warranty. Rest assured that your product will arrive in one peace, if it does not send us a picture of the broken product and we will get another shipped out posthaste. We do our very best to attempt to the the items to you in the best shape, however without the “shipping warranty” we are unable to refund or replace products.


All content is licensed under CC BY-SA 3.0.