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Carrier insurance vs NR write-off
Carrier insurance $/ship is a known cost. NR rate × AOV is the expected write-off if you skip. Buy when expected loss beats the add-on. Type insurance $/ship, NR rate %, and AOV.
Pair: Carrier insurance vs NR on Stock. Reason fork: damaged / lost vs NR. Fight EV: representment fee vs recovery.
What you type
Insurance $/ship — what the 3PL / carrier charges per parcel for declared value on this lane.
NR rate % — your not-received share on that lane (typed from closed tickets / claims, not a brochure).
AOV $ — average order value at risk when the parcel is NR.
Expected NR loss = NR % × AOV. Buy vs skip = expected loss − insurance $/ship. Positive means buy; negative means skip and write off. Do not invent an NR chip.
What not to do
Do not invent an NR rate. Do not mix bank representment fees into the insurance add-on. Do not treat porch-scan fights as free insurance. Do not average all lanes into one rate when one ZIP drives the NR.
Related: Stock, damaged / lost vs NR, WISMO tracking, representment fee vs recovery.
Procedure
- Type insurance $/ship on the lane.
- Type your NR % and AOV at risk.
- Buy when buy-vs-skip is positive.
Failure modes
- Inventing an NR rate.
- Mixing bank representment fees into the insurance add-on.
- Averaging all lanes into one rate when one ZIP drives NR.
Worked example
None on this page yet. When one lands it will be a real case: what broke, the number, and what changed. Not a composite.
Glossary
- Insurance vs NR EV
- Expected NR write-off (NR % × AOV) minus carrier insurance $/ship. Positive means buy; negative means skip.
Work with us — We run this job on your accounts. Services
FAQ
- Is this damaged / lost vs not-received?
- Related fork. [Damaged / lost vs NR](/manuals/damaged-in-transit-vs-nr) names the reason. This page prices insurance buy vs expected NR write-off.
- Is this representment fee EV?
- No. [Representment fee vs recovery](/manuals/representment-fee-vs-recovery) is bank fight cost. This page is carrier add-on vs write-off before a dispute.
- What NR rate should I paste?
- None from a vendor slide. Type your NR share on the lane you are shipping.