Shipping insurance on Biteship provides protection against loss or damage to 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 explains how to calculate insurance costs on Biteship, factors that affect insurance fees, and examples of 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 item being shipped is IDR 1,000,000, then:
0.5% × IDR 1,000,000 = IDR 5,000
📌 Note: Some couriers have a minimum insurance fee, so even if the calculated amount is lower, users will still be charged the minimum fee.
2. Factors Affecting Insurance Costs
Here are some factors that influence shipping insurance costs on Biteship:
- Item Value – The higher the value of the item, the higher the insurance cost charged.
- Type of Item – High-risk items such as electronics usually have higher insurance fees.
- 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
Here is a sample simulation of insurance costs based on a common rate of 0.5%:
| Item Value (IDR) | Insurance Rate | Total Insurance Cost (IDR) |
|---|---|---|
| 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 amount 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 the Biteship Dashboard
- Log in to the Biteship Dashboard.
- Create a new shipping order.
- Select a 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 selected courier.
5. Is the Insurance Cost Refundable?
The insurance cost is non-refundable once 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 cost refunds, please contact support@biteship.com.
6. Conclusion
Using shipping insurance on Biteship helps protect your business from the risk of loss or damage to goods during shipping.
By understanding how to calculate insurance costs, you can better manage your 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 calculations are done automatically on the Biteship dashboard and API.
- Insurance costs are non-refundable after the order is processed.
💡 Always activate insurance for high-value shipments to keep your business safer from the risk of damage or loss.
📌 If you have further questions, please contact support@biteship.com.