What Is and Isn’t Covered by Shipping Insurance

We recently took our readers through a detailed analysis of the benefits and costs that come with shipping insurance, which adds extra protection in case packages get lost or damaged en route to their destinations. Once you’ve understood the value of insuring your packages – both cost-wise and for peace of mind – the natural follow-up question is of course: What exactly can I cover? 

Below, we give you an easy-to-understand guide to what is and isn’t covered by Shippo’s shipping insurance partner, XCover, so you can make informed decisions as you plan for your high-value shipments.

What Items Cannot Be Covered by Shipping Insurance Via XCover?

The following items are not covered by XCover through Shippo:

• Animals.
• Arms, ammunition, military equipment or any similar items subject to the Arms Export Control Act.
• Automobiles, motorcycles or other motorized vehicles.
• Bulk and Break Bulk Cargoes.
• Bullion.
• Cannabis and related products, whether natural or synthetic, including but not limited to hash, hemp, edibles, or items containing Tetrahydrocannabinol (THC).
• Cash.
• Cigars, cigarettes, tobacco or tobacco products.
• Credit cards.
• Documents of any nature, including without limitation bonds, deeds, manuscripts, securities or plans.
• Furs, skins or hides.
• Hazardous, restricted or controlled items.
• Perishable foodstuffs and other temperature sensitive items.
• Plants.
• Precious metals or stones.
• Stamps; and
• Treasury notes.

Other Requirements When Shipping with XCover

In addition to items not allowed in any circumstance, there are several items XCover requires a signature for upon delivery in order to include insurance. This list of items includes any of the following with a value of $250 or more:

• TVs
• Computers/Laptops/monitors
• Jewelry

You should also keep in mind that any orders over $500 will automatically enable a signature confirmation prior to delivery. Certain items will also require a 25% deductible when filing a claim. Those items include:

• Artwork
• Antiques
• Glassware
• Ceramics
• Watches
• Jewelry

It’s also important to note that previously items shipped in packaging which describes their contents (branded packaging) were not able to be insured. Because of our latest partnership with Xcover, that is no longer the case! If you’re an e-commerce merchant using branded packaging, you’ll now be able to use your brand’s colors, logos, etc. within your packaging so you can spread brand awareness without the fear of not being protected.

If your package doesn’t qualify for XCover coverage, you can still add insurance through your carrier of choice:

While the above restrictions might take XCover out of the running for very specific shipments, it’s important to remember that for all items that are covered by XCover, choosing this option directly within the web app will result in significant cost reduction per shipment for Shippo customers.

It’s also incredibly easy to add shipping insurance to protect your orders through Shippo – whether your orders are valued at $15 or $1500 –  you can keep your customers feeling secure and satisfied. Protecting your packages through this simple step will guarantee you get your money back in a quicker, hassle-free fashion than the complicated steps generally required by major carriers.