How to Purchase Shipping Insurance

Parcels lost or damaged during shipping happen often, so you'll need shipping insurance.
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Last update:

May 2, 2023

Parcels lost or damaged during shipping happens a lot. How to effectively avoid innocent losses to e-commerce sellers, ShipSaving recommends that you purchase additional shipping insurance for higher value parcels. Please read the following information carefully:

1. Carriers provide insurance coverage

Carriers have different payout amounts for different parcel services. If a parcel is lost or damaged in transit, the carrier will pay out the actual amount on the parcel invoice. If it exceeds the payout limit, carriers will only bear the following amounts:

  • USPS First-Class Mail - $0
  • USPS Priority Mail - $100
  • FedEx Ground - $100
  • FedEx SmartPost - $0
  • UPS Ground - $100
  • UPS SurepPost - $0

USPS First-Class Mail, FedEx SmartPost, UPS SurePost do not come with any insurance coverage. If no additional insurance is purchased, the carrier will not be responsible for any loss or damage to the package and the seller will be responsible for all losses.


2. Purchase insurance through ShipSaving

You can purchase insurance for your package on the Order page by simply entering the amount of the package. Insurance is purchased in units of $100, and the system will automatically calculate the insurance fee based on the service you purchased, minus the amount of the carrier's own insurance coverage.

For example, if your package is worth $599.99, you can enter $599.99 in the Insurance section and choose ShipSurance, a third-party insurance company (lower insurance cost, you can submit your own claim), or the carrier's own insurance. 

If you choose ShipSurance for FedEx Ground, your insurance amount will be (600-100)/100*0.69, which will be shown in blue below the shipping cost when you check the shipping rate. If you purchased the carrier's insurance, the insurance amount will be included in the shipping cost.


Alternatively, you can purchase shipping insurance by making the selection at the shipping options on Create a Shipment page.



3. How to file a claim

If the package is lost or damaged during transit, you can contact us to submit a claim, and the claim result will be subject to the carrier's approval. Please refer to the specific guidelines here.


Written on:

April 19, 2022
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