Short Answer: No, FedEx does not insure packages. What FedEx offers is declared value coverage, which is not the same as shipping insurance. For full-package protection, third-party insurance providers like U-PIC Shipping Insurance offer broader and more comprehensive coverage, often at a lower cost.
What Is FedEx Declared Value?
FedEx's declared value is a liability limit, not actual insurance. It represents the maximum amount FedEx will consider paying if your package is lost or damaged while in transit. However:
- Declared value coverage only applies while FedEx controls the package
- It excludes many common shipping risks (e.g., porch theft, weather damage)
- It does not reimburse full costs like shipping fees or replacement handling
- Claims can be time-consuming and harder to approve
FedEx itself clarifies:
"Declared value is not shipping insurance... You may or may not choose to purchase insurance from an insurance agent or broker to get door-to-door protections... Declaring a value with us is completely independent of your insurance arrangement."
Why Choose U-PIC Over Declared Value?
U-PIC Shipping Insurance delivers true peace of mind with comprehensive, affordable protection:
- Full-value coverage for loss, theft, or damage
- Protection beyond FedEx's control, including last-mile and porch theft
- Quick, customer-first claims process
- Reimbursement includes shipping costs and replacement goods
- Integration with major platforms like eBay, Amazon, and others
"U-PIC offers true shipping insurance - door to door, hassle-free, and often more cost-effective than declared value coverage."
Who Uses U-PIC?
E-commerce sellers, fulfillment centers, and high-volume shippers across industries rely on U-PIC to:
- Reduce claim headaches
- Lower shipping protection costs by up to 90%
- Deliver better buyer experiences
- Scale confidently with global support
Final Take: Shipping Insurance > Declared Value
FedEx declared value is a basic liability coverage, not insurance. If you want real protection, reliable payouts, and peace of mind beyond carrier control, true shipping insurance is the better option.