Fedex Warning: $100 Limit Insurance on Ground

When I went to Fedex today, I was told that there is a new policy. Any electronics or computer equipment sent ground will only be insured up to $100.

I was ready to go into convulsions! The reason I was given is that there have been "too many claims and losses" so that is what they decided to do.

So, the lower shipping prices of Fedex Ground over UPS Ground are now useless. I find it amazing that they could even legally deny insurance on expensive items.

Considering that their ground treatment of packages was really no better than UPS, I can see why they had so many losses. I certainly hope UPS doesn't follow suit, and do the same.

Now, not only do our packages receive abuse from the shippers, so do we...
I just telephoned my account representative and was told that Fed Ex accepts responsibility up to $25,000.00 for electronics insured at time of shipment.

I had the agent check with the FedEx ground operations supervisor, the insurance and claims department supervisor and the rate and quote people. None were aware of this policy.

There are some items exempt from coverage and include irreplaceable art work, precious furs and gold or diamonds. Granted some audio gear is precious as gold but it appears that for the time being we can still insure it, as long as it is not more than $25,000.00.
This of course assumes that they would actually PAY a damage claim. Which, in my experience, they do everything they can to avoid.
I recently went to one of those 2nd party shippers(Mail Boxes) and they would not ship Fed EX Ground because of all the damage claims.
I had a Fedex claim this summer that was paid promptly with no fuss. It was only for $65 (the repair costs). There was an apology letter with the check.

A long time ago I also had a UPS claim that was promply paid in full. It was a package that was lost in transit; so they had no defense. I made out well, because it was a one year old laptop computer being sent in for a free warranty repair. Of course in a years time, the new laptop the insurance money purchased, was a pretty good upgrade over the one that was lost.

So believe it or not, there is sometimes a happy ending.

I have had other minor shipping damage in the past that I decided to ignore.
Ground is always riskier than air shipment. All valuable electronics should be double boxed with cushioning material between inner and outer boxes. You're a fool not to do this. Extra boxes can be found at larger office supply stores (Staples, Office Max, etc.), as well as storage centers, moving companies, etc..

My experience as someone who uses shipping service professionally and frequently, is that Fed Ex Ground seems to arrive with boxes in better condition than UPS. Quite consistantly, I've found UPS packages to arrive with very large bashes, tears, and holes knocked hard into the box.

Jeff Delman
Value Audio
I hope your FedEx Ground rep was just hopelessly misinformed, as is typical of that company. My Ground rep is unaware of this new "policy." I am sure they have had lots of claims because they have been doing LOTS of damage, see the many threads on this subject in the last couple of months. I just collected $700 from them for destroying some speakers coming from Canada. After their initial blanket denial, I sent them photos of the damaged box and speaker and right away I received a check for the insured amount that the shipper had paid. If they start limiting themselves to $100 liability, the only thing that will be shipped Ground is a paper letter or magazine. And even then, they may arrive all ripped up and water-damaged.
Please let us know if your rep still insists on this unheard-of policy.
I was told that the 100 clams insurance was all that is INCLUDED in the quoted shipping rate for the parcel. Extra insurance IS available at an ADDITIONAL cost.
I received an interesting shipment last week. I ordered two processors for our computers & when FedX showed up at the door, I mentioned it looked like someone had been playing basketball with the box. I wasn't too worried, as the processors are in a little plastic box about 2" x 2" & the shipping box was 12" x 14". She looks at the box & says, "I didn't even see the hole". Now I'm thinking what hole? She entered this information in her keypad, I signed for it & sat down to open the box. The processors were fine but there was another package inside mine. Apparently, this other package, which was a tape sent overnight priority, got forced into my package. Upon closer examination of the hole in the side of my box, it was torn large enough for the tape to be forced in.

This is so weird! My dog was just barking & I went to see who was outside. The FedX truck just pulled up with the same driver across the street. I took the box over there & told her what happened. She thought it interesting, just like I did.

Oh well, just thought I'd mention this strange incident for your reading pleasure.
After reading the replies above, I also called Fedex and was told by a Ground Manager that they are aware of no such policy. I will have to contact the facility that told me this, and confront them.
Shipping is almost invarably a crap game....

I hate every aspect of it.

I find no matter how well I pack stuff Fedex and UPS ground find ways to damage items.

I find that heavy amps and speakers are the most susceptable to damage.

Tok20000: Try shipping a turntable and see how well that holds up compared to speakers and amps. From what i've been told, TT's suffer the most damaged in shipment followed by speakers. Very heavy amps are in third place. I would think that cd players and transports would be right behind amps due to the moving mechanisms. All of these things are probably damaged from rough handling and / or poor packing. After that, it is probably all a matter of improper packing but i'm sure that there are exceptions as no package is treated "gently" anymore. Sean
> employee at my local MailBoxes Etc. strongly implied a contractual affliliation between M.B.Etc. and U.P.S. That might explain part of the reluctance to ship via Fedex if true. Just a rumor at this stage I might add. A call to my local Fedex customer service person did not confirm the $100 limit.
I've gotten to the point where wooden crates are my preferred method for heavy stuff. I got a pair of tubed monoblocks (the Stippich amps), 140lb. each net...these were each boxed inside a crate (and bolted to it) made from 1/2 plywood and strapping. That crate was in another larger crate, same construction, surrounded by styrofoam peanuts. The outer crate(s) were bolted to a pallet and then shrinkwrapped to boot. Total weight was about 350lbs. for the amps, 4 crates, and pallet. Over $600 to ship via FedEx air freight. But worth it, since they arrived in mint condition. Took me about 4 hours to unpack and get in the house by myself.

My Mailboxes etc, confirmed that to me that UPS and MBE share ownership at the corporate level. MBE, I believe, is a franchise operation, so each is independently owned. They also told me they were getting set-up w/Fedex Ground in the near future.
What I find funny (and agravating) is that MBE charges a PREMIUM (beyond what UPS charges if you ship directly through them) for shipping UPS.

It would be nice if MBE were effectively UPS's retail outlets, but that's not the case. They charge a huge premium, but how else are they to make money? Even if UPS gives them a cut.
NO NO NO NO! I asked the manager of my Fedex facility, and he showed me the Dec. 2002 revised regulations sheet where nothing electronic or computer related will be insured for over $100 Ground. No, you can't buy extra insurance. Another local Fedex told me the same thing.

If you call 1-800-GO-FEDEX, they will tell you they know nothing of this change, but the stations insist there is a lack of knowledge at the customer service numbers.

If someone can to the bottom of this, I would so appreciate it. I just can't handle any more phone calls to Fedex concerning this.
I just shipped some electronics today FedEx ground and they insured it for what I asked?????????????? They never once told me about that new policy. They charged me for it and had no problem taking my money for the Insurance, so I would think they are Liable.
Both my Fedex facilities are refusing to insure over $100 for Ground electronics. I called Fedex Ground again today. The rep spoke to Claims, who gave him a vague answer, referring to the paragraph that states "easily damaged or sensitive goods". This rep said he doesn't believe there is a $100 limit on electronics either, but he plans to go through the chain of command and get me some kind of definitive answer. We'll see!!!
And, of course, the dreaded forklift on Yellow freight!

MBE, the parent company, is owned by UPS. Therefore, the relationship between MBE and UPS is much more incestuous than I thought. It makes it interesting that there are
few or no ways in many localites to get UPS to accept a package through any sort of retail outlet other than MBE and yet, as you correctly state, their premium is enormous. In NYC, as soon as UPS bought MBE and as soon as MBE outlets started appearing on every block in Manhattan, UPS closed all of their manned retail outlets (storefronts). The relationship between MBE and UPS explains why MBE refuses and has no provisions for shipping via Fedex ground. MBE evidently perceives Fedex ground as too direct a competition to UPS' bread and butter ground service. For the high premium of shipping UPS via a retail outlet, and the UPS damage horror stories, I had stopped using UPS. Then, Fedex damaged a speaker that I shipped via air express ...