Insurance Problem with USPS ---they don't pay!

[tdebuys]

I'm sure I'm not alone. Denied claims are going to seriously limit what we can offer for sale on eBay.  We bought the extra insurance, we've shipped 3205 antique glass items without a problem and now USPS won't pay our claim for a damaged package.  They denied our first appeal after we supplied them with everything they asked for to support the claim.  The instructions for the final appeal were exactly the same as the first instructions.  We of course have nothing else to add.  We supplied them with what they required.   I guess we have no recourse.  I am filing a complaint with the Attorney General's Office of  our state for Insurance Fraud.   We paid for insurance, we followed the rules, and have been denied compensation for damage they do not deny having made.   You cannot sue in court as an individual without it costing more than your claim unless it's for thousands and not hundreds of dollars.  I don't need to be told that such losses are part of doing business... they are not... we bought the insurance and paid extra for it.   Our only response will be to ship only via UPS until such a time as they too deny a claim.  At that point I guess we just quit selling on line which is ok with me, but I will miss it and the friends we've made.   If anyone knows of a class action suit against USPS for not payment of insurance claims we'd be glad to join it.

[ebooksdiva]

Ok but what does this have to do with eBay? It seems this is an issue between you and USPS.

[postid]

I learned many years ago never to buy insurance for almost anything. You say you shipped 3205 items without a problem now you have 1 damaged item and USPS won't pay. If you paid insurance for some are all of the 3205 items, then that is the money you really lost. This money paid for insurance would have easily covered this loss now with change to spare. I self insure and if a package gets broken open or lost, I just ship another. No hassle with USPS or any shipper and the money I saved on insurance easily covers any losses I have had. 

(Over $2M dollars sold in 45 years, loss is less than $2K. Insurance for all shipments would easily cost in excess of $20K)

[tdebuys]

I know it's hard for some people to make the jump from buying insurance to cover loss on eBay items you ship, but there is a relevancy.  IMHO eBay could do more to support it's sellers that have valid claims from any carrier.  Of course you probably don't see any relevant relationship between shipping and selling, so I won't explain further.  I'll sum it up this way for you.  If the cost of losses exceeds profitability there is no reason to sell on eBay.

[tdebuys]

The bulk of my items are supposed to be covered by shipping USPS because of the type of post I use.   When I have an item shipping out for amounts above a $100 dollars I buy the additional insurance, and only in those cases.   Your argument is probably valid, but if one buys insurance anyone should be relatively confident to have a loss covered.  The problem is not how you frame it, though I don't disagree with you in terms of economics.  However, IF someone buys insurance then they should expect to be covered for a loss.   In my case the post office does not dispute they damaged my goods.  They just refuse to pay and there is no reason given except a bunch of double talk about assured value.   What an item sells for and what someone says it's worth are two different things.  We know what the item sold for and we insured it for that amount.  It is that amount we are being denied payment on.  It isn't right.

[martin2001]

Perhaps you can use other label providers who offer private insurance. I had just a dew cases but they pay without any problem or hassle.  One problem with priority mail would be that they would cover only what is above the default USPS insurance. So If you mail something via Priority, you insure it for $200, the private insurer will pay only $100 if another $100 is included as part of the priority mail postage. At least you will get $100 back.

[fab_finds4u]

I find the only good thing insurance is for is  if they lose the package.

Buyers won't work with insurance claims and take it to thePO to be inspected. They file an eBay  case and then they're required to return the package which voids the insurance.

Your only defense is to double box and  package well enough you can throw it down a flight of stairs and the package lands without breaking.

Insurance loves to deny claims saying you didn't protect it sufficiently if it got broken.

[ms.rodriguez*]

Exactly.   For each item that they paid insurance for , they could have put that money in a can or piggy bank and would have a few thousand dollars.  (3000+ items shipped and insurance at least 3.00 or more)   For glass items, you need to really over pack. Use 2 boxes if necessary.  If shipping something with a lid, make sure that there is alot of bubblewrap between the item and the lid.     Use strong boxes, not a box that already has stress marks on it (crushed areas.  You don't stop selling because one item out of 3000 broke especially if you still have alot more glassware to get rid of.

[12345jamesstamps]

Insurance is for something lost. If item is broken they assume it was not packed correctly.

[stephenmorgan]

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@martin2001 wrote:

Perhaps you can use other label providers who offer private insurance. I had just a dew cases but they pay without any problem or hassle.  One problem with priority mail would be that they would cover only what is above the default USPS insurance. So If you mail something via Priority, you insure it for $200, the private insurer will pay only $100 if another $100 is included as part of the priority mail postage. At least you will get $100 back.

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I use private insurance anytime the value is above $100.  Perhaps you are correct and maybe I have misunderstood the user agreements of the private insurance.  The two that I have used I could swear they state that I give them permission to retrieve and insurance the shipper may of had.  I take it to mean they will pay up to the value of insurance purchased but they are entitled to any insurance monies the shipper may pay.

[rkcitymuse]

I am in the same boat. I have a lot of very expensive items to sell and cannot sell them on Ebay unless I can be sure that any loss or damage will be paid for by insurance. As a result I am losing $. Saying its not an Ebay issue is way off. Ebay will pull your money right out of your pocket and hold it if the buyer files a claim for any reason at all and wants a refund and you may never get a dime back if insurance doesn't pay it. No big deal to Ebay if you lose 3 or 4 hundred dollars, or more.

[redlinear]

@postid is 100% correct! 
Unfortunately, it's not easy to convince a person of this. 
The purchase of additional insurance is a waste of money.  
The pursuit is a waste of time.

[redlinear]

@tdebuys , postid is correct.  We filled a UPS truck every day for 10 years.  
Do not buy added insurance.
Make all claims for under $100 (regardless of selling price).
Make NO claims for over $100 (regardless of selling price).

[redlinear]

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@fab_finds4u wrote:

I find the only good thing insurance is for is  if they lose the package.

Buyers won't work with insurance claims and take it to thePO to be inspected. They file an eBay  case and then they're required to return the package which voids the insurance.

Your only defense is to double box and  package well enough you can throw it down a flight of stairs and the package lands without breaking.

Insurance loves to deny claims saying you didn't protect it sufficiently if it got broken.

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They have an out when they loose a package (used when it's really expensive).   You packaged it in such a way the label came off.
A wooden crate with 6" of spray foam?   Not packaged well enough.
Have THE UPS STORE package it for you?   I forget that "out", but the claim was denied. (seriously).

You cannot prove anything was packaged to their standards. Even if they packaged it for you.

[jimmy1000000]

When you purchase a label through eBay you're using their Pitney labels. It's a total scam. You pay eBay extra on their account with the USPS for insurance they fee you on the additional insurance cost. eBay knows every insurance claim will be denied if the item is shipped back to you because USPS needs it in the condition it was delivered in. eBay will tell you that the United States Post Office can go pick the item up without a return label as is USPS policy. But they'll tell you after the fact that you have to have the item returned because that's their policy. But they sold us the insurance on their account and everything gets denied if it's the shipment is altered and re-shipped. 

It's such a scam. I reached out to them made sure that I had the option of having the post office pick it up for the insurance inspection as they require and not using a return label. I was assured by eBay shipping department and trust and safety that yes that's no problem, I have that right. In the meantime the seller did not give the item to USPS when they came to pick it up claiming that they were going to go in and make their own insurance claim. They also  called up eBay and And the representative told them not to cooperate with the post office after they literally put a hold on it to give the post office time to contact me to arrange pickup. So since eBay forced the return and lied to me while not following the post offices process it's denied because it was re-shipped. 

It's just another blatant ebay scam since eBay's a **bleep** piece of **bleep** company they deserve to be **bleep**ed to death.