All Things Shipping | May 12, 2022

What Is and Isn’t Covered by Shipping Insurance

Heather Lohmann

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, Shipsurance, so you can make informed decisions as you plan for your high-value shipments.

What Items Cannot Be Covered by Shipping Insurance Via Shipsurance?

  • Some electronics with screens (excluding laptops) cannot be insured. This includes items with LCD/LED monitors or screens, such as LCD, plasma, CRT, projection, and other televisions.
  • Documents such as passports, securities or deeds, tickets, manuscripts, or currency including bills, cash in transit, evidence of debt, money orders, cash on delivery (COD), gift cards, and coins.
  • Specific types of glass such as stained glass, plate glass, or float glass.
  • Anything deemed to be hazardous per UPS Hazardous Materials List.
  • Cigarettes, cigars, or tobacco products.
  • Vehicles including automobiles and motorcycles.
  • Some foods, including eggs.
  • Perishable cargo.
  • Live trees, flowers, plants, or seeds.
  • Live animals.
  • Specific fragile items.
  • Neon items, including signs.
  • Stone or ceramic slabs.

It’s also important to note that items shipped in packaging which describes their contents are also not able to be insured. If you’re an e-commerce merchant using branded packaging, you’ll still be able to use your brand’s colors – just be sure the packaging doesn’t detail what’s inside.

In addition to items not allowed in any circumstance, there are several items Shipsurance requires a signature for upon delivery in order to include insurance. This list of items includes:

  • Laptops, tablets, desktop computers, iPads, and other similar electronics.
  • Jewelry valued at $1000 or more, including necklaces, earrings, watches, rings, bracelets, broaches, and other high-value pieces.
  • Parcels or freight with a value of $10,000 or more.

You should also keep in mind that any orders over $500 will automatically enable a signature confirmation prior to delivery.

Other Requirements When Shipping with Shipsurance

Along with restricted items and packages that require a signature upon delivery, there are also several package requirements that apply when adding shipping insurance via Shipsurance:

  • Make sure you do all that you can to ensure your shipment can withstand the everyday rigors of transit. For example, if the item is fragile, pack it with bubble wrap or similar packaging materials to keep the item safe.
  • Shipping your item in the manufacturer’s packaging will void coverage, so – as mentioned above – be sure to pack your items in packaging that does not advertise the contents inside. 
  • The shipping address must be correct.
  • If the item was damaged or lost during transit, the package must be marked complete or delivered when the claim is made. The claim may be denied if the item is sent back, thrown away, released to the shipping carrier, or was never sent in the first place.

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

While the above restrictions might take Shipsurance out of the running for very specific shipments, it’s important to remember that for all items that are covered by Shipsurance, 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.

Heather Lohmann is a Senior Content Marketing Manager at Shippo.

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