Many entrepreneurs assume that a package is automatically fully insured. In reality, things work differently. Standard terms in the transport industry are based on a compensation per kilo, not on the actual value of your goods. In these cases, you’ll need to arrange additional insurance for your shipment.
In this blog, we explain how this works, the differences between domestic and international shipments, and when it is wise to opt for extra insurance.
What Most People Don’t Know: Standard Insurance is Highly Limited
With almost all carriers, damage or loss is not automatically compensated based on the actual value of your shipment. Liability is linked to the weight of the shipment and the applicable national and international terms.
This means that a light but valuable product—such as a laptop, artwork, measuring instrument, or prototype—is often only covered for a fraction of its value under standard regulations.
At Easy2send, we believe in transparency. We prefer clarity now over an unpleasant surprise later.
Domestic Shipments (The Netherlands): AVC Conditions in Plain English
For transport taking place entirely within the Netherlands, AVC conditions (Algemene Vervoerscondities) apply. These terms are used by almost all professional carriers.
The most important rule: The carrier’s liability is capped at €3.40 per kilogram of transported weight.
A Simple Example: You are shipping a laptop with a value of €500 and a weight of 2 kg. According to AVC, the maximum liability is: 2 kg × €3.40 = €6.80
In this scenario, you would only receive a fraction of the actual value in the event of damage or loss. For everyday, low-value shipments, this is rarely an issue. For more expensive goods, however, it poses a serious risk.
International Transport: The CMR Convention and SDR Rates
As soon as a shipment crosses a border, the CMR Convention comes into effect. This is the international legislation governing road transport. Here too, compensation is based on weight rather than actual value.
The compensation is set at 8.33 SDR per kilogram.
SDR stands for Special Drawing Rights, a unit of account used by the IMF. The value of an SDR fluctuates and is expressed in euros.
In Practice: Imagine the current SDR rate is €9.40. You ship the same 2 kg laptop. The maximum compensation under CMR becomes: 2 kg × 8.33 SDR × €9.40 ≈ €18.80
Once again, for expensive, lightweight items, the standard compensation falls significantly short of the actual value. If you want to check the current SDR rates, you can find these directly on the IMF website.
When is Additional Insurance Wise?
Not every shipment requires extra insurance; in many cases, the standard terms are perfectly adequate. However, there are specific situations where extra coverage is highly recommended:
- Valuable electronics: Laptops, cameras, measuring equipment.
- Art, antiques, and unique pieces.
- Medical equipment or specialized instruments.
- Prototypes, architectural models, or irreplaceable samples.
- High collective value: Multiple items in a single shipment that together represent a large sum.
For these types of shipments, damage or loss can have immediate and severe financial consequences. Additional insurance offers peace of mind.
Easy2send Extended Liability: Tailored Peace of Mind
At Easy2send, we offer the option to secure extra coverage for your shipment through our Extended Liability scheme. This bridges the gap between the standard legal compensation and the actual value of your goods.
How does it work in practice?
- During your transport request, you indicate what you are shipping and its estimated value.
- We review which coverage best suits your shipment and route.
- You receive a clear proposal upfront, so you know exactly what to expect.
This way, you don’t have to dive into the fine print of international legislation yourself, yet you can still make an informed decision.
Why are we so open about this?
As a courier service, we see every day how important it is that expectations align with reality. A shipment is often more than just a package; it could be a critical presentation, an expensive piece of machinery, or a project that took months of hard work.
We believe it is only fair to be transparent about:
- What is and isn’t covered by default.
- When extra insurance makes sense.
- How we can help you arrange it properly.
We prefer a good conversation beforehand over disappointment afterwards.
Doubts About Insurance? Give Us a Call.
Every shipment is different. Sometimes it’s straightforward; sometimes it requires a bit of strategic thinking. If you have a shipment and you’re unsure whether it is sufficiently covered or if you need to arrange something extra, please contact our planning department. We are happy to think along and provide honest advice.
