PYMNTS MonitorEdge May 2024

Shippo and Cover Genius Launch Insurance Solution for eCommerce Merchants

b2b payments, shipping

Shipping platform Shippo and InsurTech Cover Genius have joined forces to introduce an insurance solution for eCommerce merchants and ensure a positive shipping experience for their customers.

The solution, Shippo Total Protection, aims to provide comprehensive protection, global coverage and seamless claims handling for businesses, the companies said in a Tuesday (Oct. 24) press release.

Shippo Total Protection allows merchants to safeguard their businesses by covering the total value of their orders, shipping label costs, return shipping for damaged parcels, and reshipping costs for insured packages across three regions: North America; Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC), according to the release. 

“Shipping protection has long been an add-on option we recommend to our users for peace of mind, and we’re excited to team up with Cover Genius to enhance the experience for our merchants,” Shippo Chief Operating Officer Andreas Lieber said in the release.

Powered by Cover Genius’ global distribution platform called XCover, Shippo Total Protection provides comprehensive global shipping protection that extends to all shipping and parcel carriers, according to the press release. It also features porch piracy coverage.

Previously limited to outbound shipments from the United States, the coverage now includes packages shipped from other countries across North America, EMEA and APAC, the release said. Cover Genius holds licenses or authorizations in more than 60 countries and all 50 U.S. states, enabling its shipping partners to scale globally and offer protection conveniently through a single application programming interface (API).

The claims process has also been streamlined with Cover Genius’ claims handling, per the release. This digital-first approach significantly reduces the time to resolve claims and process reimbursements. Approved claims are processed instantly in over 90 currencies. 

The launch of this offering comes about seven months after Cover Genius made another move in the eCommerce market by purchasing the warranty provider Clyde. The company said in March that the acquisition would expand its share of the midsized eCommerce market and align with its growth strategy, which also included its 2022 purchase of refund protection company Booking Protect.

PYMNTS Intelligence has found that 33% of consumers would not only make more online purchases, but also spend more per purchase, if they could buy insurance protection at checkout.

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