Shipping insurance on Biteship provides protection against loss or damage of goods during the shipping process. To ensure your items receive appropriate coverage, it is important to understand how to calculate shipping insurance costs so you can manage your shipping budget more effectively.
This article discusses how to calculate insurance costs on Biteship, factors that influence insurance costs, and example calculations for various types of shipments.
1. How Insurance Cost Calculation Works on Biteship
Insurance costs on Biteship are calculated based on a percentage of the insured item's value. The insurance rate may vary depending on the courier’s policy and the shipping service used.
Insurance Cost Calculation Formula
Insurance Cost = Insurance Rate (%) × Item Value
Example:
If the insurance rate is 0.5% and the value of the shipped item is Rp1,000,000, then:
0.5% × Rp1,000,000 = Rp5,000
📌 Note: Some couriers have a minimum insurance fee, so even if the calculated cost is lower, users will still be charged the minimum fee.
2. Factors Affecting Insurance Costs
Here are some factors that affect shipping insurance costs on Biteship:
- Item Value – The higher the item value, the higher the insurance cost charged.
- Item Type – High-risk items such as electronics usually have higher insurance costs.
- Courier Policy – Each courier has different insurance rates.
- Minimum Insurance Fee – Some couriers apply a minimum fee for each insured shipment.
3. Example of Shipping Insurance Cost Calculation
Below is a simulation example of insurance costs based on a general rate of 0.5%:
| Item Value (Rp) | Insurance Rate | Total Insurance Cost (Rp) |
|---|---|---|
| 500,000 | 0.5% × 500,000 | 2,500 |
| 1,000,000 | 0.5% × 1,000,000 | 5,000 |
| 5,000,000 | 0.5% × 5,000,000 | 25,000 |
| 10,000,000 | 0.5% × 10,000,000 | 50,000 |
📌 If the calculated cost is below the courier’s minimum insurance fee, the minimum fee will still apply.
4. How to Activate Insurance on Biteship
Biteship provides an easy way to activate insurance when creating a shipment.
Via Biteship Dashboard
- Log in to the Biteship Dashboard.
- Create a new shipping order.
- Select the courier and shipping service.
- Enter the value of the item to be insured.
- The system will automatically calculate the insurance cost based on the applicable rate.
- Complete the payment and confirm the order.
Via Biteship API
If you are using the Biteship API, add the following parameter when creating an order:
{
"courier_insurance": 5000000
}📌 Biteship will automatically calculate the insurance cost based on the item value and the chosen courier.
5. Can Insurance Fees Be Refunded?
Insurance fees cannot be refunded after the order is processed, except if the shipment is canceled before the item is handed over to the courier.
If you have questions regarding insurance fee refunds, please contact support@biteship.com.
6. Conclusion
Using shipping insurance on Biteship helps protect your business from the risk of loss or damage during shipping.
By understanding how to calculate insurance costs, you can better manage shipping expenses and ensure high-value items receive maximum protection.
Key points about insurance costs on Biteship:
- Costs are calculated based on a percentage of the item value.
- Each courier may have a minimum insurance fee.
- Cost calculation is done automatically in the Biteship dashboard and API.
- Insurance fees cannot be refunded after the order is processed.
💡 Always activate insurance for high-value shipments to keep your business safer from damage or loss risks.
📌 If you have further questions, please contact support@biteship.com.