{"id":21538,"date":"2023-06-27T08:43:32","date_gmt":"2023-06-27T13:43:32","guid":{"rendered":"https:\/\/www.shipstation.com\/?p=21538"},"modified":"2025-10-14T09:48:46","modified_gmt":"2025-10-14T14:48:46","slug":"how-to-make-shipping-insurance-more-efficient","status":"publish","type":"post","link":"https:\/\/www.shipstation.com\/blog\/how-to-make-shipping-insurance-more-efficient\/","title":{"rendered":"How to Make Shipping Insurance More Efficient"},"content":{"rendered":"\n

Protecting shipments against damage and theft is necessary. Regardless of whether you or your customers want to shell out a little extra money, there\u2019s just some things you can\u2019t avoid. Insurance is one of them! However, insurance doesn\u2019t have to be a hassle. And, of course, the best insurance is insurance you don\u2019t have to use! We\u2019ll give you tips and pointers to make shipping insurance more efficient<\/a>. Knowing the ins and outs of shipping insurance will help you and your customers have a better delivery experience without compromising reliability or coverage. <\/p>\n\n\n\n\n\n

How to File a Shipping Insurance Claim with USPS, UPS, FedEx, ParcelGuard, and More<\/h2>\n\n\n\n

When you file a claim for a damaged or lost parcel, you need to take it up with the issuing body. So, if you insured the package with USPS, you would need to file the claim with USPS. <\/p>\n\n\n\n

However, if you insured the package with a third-party provider, you would need to file the claim with them. However, this will require paperwork from the carrier that shipped the parcel as well. Below you will find where to go to begin the claims process. <\/p>\n\n\n\n

Note: These steps are intended for the party that sent a damaged or missing package. If you were the intended recipient, you will need to reach out to the seller or sender of the package.<\/p>\n\n\n\n

How to File an Insurance Claim with Different Providers<\/h3>\n\n\n\n
Provider<\/td><\/tr>
USPS<\/a><\/td><\/tr>
UPS<\/a> <\/td><\/tr>
UPS from ShipStation<\/a><\/td><\/tr>
FedEx<\/a><\/td><\/tr>
DHL Express<\/a><\/td><\/tr>
GlobalPost<\/a><\/td><\/tr>
Seko LTL on ShipStation<\/a><\/td><\/tr>
ParcelGuard<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

How to File an Insurance Claim <\/h2>\n\n\n\n

To file an insurance claim with most providers, you can follow these steps:<\/p>\n\n\n\n

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  1. Start by gathering all the necessary documentation and information related to the shipment and the damaged or lost items. This may include the shipping label, proof of value or invoice for the items, photos of the damaged items (if applicable), and any other supporting evidence.<\/li>\n\n\n\n
  2. Contact the carrier <\/li>\n\n\n\n
  3. Provide the required information, such as the tracking number, date of shipment, recipient’s address, and a detailed description of the loss or damage.<\/li>\n\n\n\n
  4. Upload any supporting documentation, such as the shipping label, proof of value, or photos of the damaged items. Follow the instructions on the claim form or requested by an agent and attach\/provide any relevant files.<\/li>\n\n\n\n
  5. Review and submit the claim form. Make sure all the information provided is accurate and complete.<\/li>\n\n\n\n
  6. After submitting the claim, you will receive a claim number until the dispute is approved or denied.<\/li>\n\n\n\n
  7. The provider or carrier may contact you for additional information or documentation to support your claim. So it is crucial you keep your claim number.<\/li>\n\n\n\n
  8. If your claim is approved, you will be compensated based on the declared value of the items, up to the coverage limit.<\/li>\n<\/ol>\n\n\n\n\n\n

    Tips For Filing Your Shipping Insurance Claim <\/h2>\n\n\n\n

    Accurate Product Valuation: <\/strong>Ensure that the declared value of your products accurately reflects their worth. Overvaluing or undervaluing items can lead to issues when filing insurance claims. Keep records of product costs, including invoices, receipts, or appraisals, to support accurate valuations.<\/p>\n\n\n\n

    Keep All Packaging and Damaged Goods: <\/strong>When you are filing a claim, keep all packaging and the damaged goods as they were received, as photographs may be required for the claim processing. Do not dispose of any of the shipment materials or goods before the claim is completed.<\/p>\n\n\n\n

    Proper Documentation:<\/strong> Maintain thorough documentation of the shipping process. Take photos or videos of the packaged items before they are shipped. This evidence can be valuable when filing claims and proving the condition of the items before they were sent.<\/p>\n\n\n\n

    Streamlined Claims Process: <\/strong>Familiarize yourself with the claims process for insurance providers and shipping carriers. Understand the required documentation, timeframes, and procedures. Maintain organized records to facilitate the claims process should the need arise.<\/p>\n\n\n\n

    Provide Customer Support:<\/strong> Provide prompt and helpful customer support in case of shipping issues or damage. Respond to customer inquiries and concerns promptly, and assist them in filing insurance claims if necessary.<\/p>\n\n\n\n

    Continuous Improvement:<\/strong> Regularly evaluate the efficiency of your shipping insurance process. Analyze claim trends, customer feedback, and carrier performance to identify areas for improvement. Make adjustments to your shipping procedures as needed to optimize efficiency.<\/p>\n\n\n\n

    Tips For a Smooth Customer Service Experience<\/h3>\n\n\n\n

    Clear Communication with Customers:<\/strong> Inform customers about the shipping insurance coverage and any additional options available to them. Clearly state the responsibilities and limitations of insurance coverage in your terms and conditions or shipping policies.<\/p>\n\n\n\n

    Provide clear instructions for the claims process:<\/strong> Submitting an insurance claim has a few moving pieces. Though the seller will need to submit the claim, the recipient may need to hold onto any damaged packaging as well as the items. Provide prompt and helpful customer support in case of shipping issues or damage. Respond to customer inquiries and concerns promptly, and assist them in filing insurance claims if necessary.Make sure that any steps such as photographing the packaging or damaged items are clearly outlined. Tell the customer not to throw the material away. Avoid having them mailing the damaged merchandise back to you until authorization from the carrier or insurance provider has been given.<\/p>\n\n\n\n

    Default Carrier Coverage for Shipping Insurance<\/h2>\n\n\n\n

    Before deciding if you need to purchase insurance for a parcel, you first want to figure out if insurance is already included. Many carriers and shipping services provide coverage for shipments with a low declared value. While some services like USPS First Class Mail\u00ae don\u2019t offer shipping coverage for shipments by default, others like USPS Priority Mail International provide $200 of default coverage. This means any parcel valued at less than $200 is eligible for reimbursement in the event that the shipment is damaged or lost in transit. Keep in mind, though, that carrier-provided coverage doesn\u2019t cover as many incident types as some third-party providers. <\/p>\n\n\n\n

    Default Shipping Insurance Coverage By Carrier <\/h3>\n\n\n\n
    Service<\/td>Not Included<\/td>$50<\/td>$100<\/td>$200<\/td><\/tr>
    USPS Priority Mail\u00ae<\/td><\/td>\u221a<\/td><\/td><\/td><\/tr>
    USPS Priority Mail Express<\/td><\/td><\/td>\u221a<\/td><\/td><\/tr>
    USPS Priority Mail International\u00ae services<\/td><\/td><\/td><\/td>\u221a<\/td><\/tr>
    USPS First Class Mail\u00ae
    (domestic & international) <\/td>    		\u221a<\/td><\/td><\/td><\/td><\/tr>
    USPS Media Mail\u00ae<\/td>\u221a<\/td><\/td><\/td><\/td><\/tr>
    USPS Parcel Select\u00ae<\/td>\u221a<\/td><\/td><\/td><\/td><\/tr>
    FedEx\u00ae<\/td><\/td><\/td>\u221a<\/td><\/td><\/tr>
    UPS\u00ae<\/td><\/td><\/td>\u221a<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    UPS Shipping Insurance Default Coverage <\/h3>\n\n\n\n