Shipping Insurance

Why U-PIC?

Trusted Shipping Insurance for Businesses and Individuals

U-PIC is a third-party shipping insurance provider with over 30 years of industry experience. We partner with USPS, UPS, FedEx, DHL, and more to offer discounted rates - up to 90% lower than carrier insurance. Our coverage is fast, flexible, and backed by a simple online claims process.

• Over 30 years of trusted service
• Coverage for domestic and international shipments
• Rates up to 90% lower than carriers
• Seamless claims process and customer support
• No hidden fees or long-term commitments

U-PIC shipping insurance is underwritten by Continental Casualty Company in the United States, The Continental Insurance Company in Canada, and Lonham Ltd. in the United Kingdom. Coverage rules for each region are on our coverage page.

Shipping Insurance vs. Carrier Liability vs. Declared Value vs. Shipping Protection

These four terms are often used as if they mean the same thing. They do not. Only one of them is an insurance policy, and the difference matters most on the day a package goes missing.

FedEx says it plainly in its own Service Guide, under the heading "Declared value and limits of liability (not insurance coverage)": "WE DO NOT PROVIDE INSURANCE COVERAGE OF ANY KIND." Declared value raises the most a carrier will pay. It does not change who decides your claim.

Shipping Insurance by Carrier

Every major carrier includes a small amount of coverage and charges extra for more. Here is what USPS, UPS, FedEx and DHL Express include, what they charge above that, and what the same package costs to insure with U-PIC. Carrier figures come from each carrier's 2026 published rates, last reviewed and updated October 21, 2026.

USPS Shipping Insurance

USPS includes up to $100 of insurance on Priority Mail, Priority Mail Express and USPS Ground Advantage packages that carry a tracking barcode. Above that, you buy USPS insurance in value bands, up to a maximum of $5,000. Under USPS Notice 123 (effective October 4, 2026), insuring a $300 package costs $4.55, a $500 package costs $7.55, and anything over $600 costs $9.05 plus $1.50 for each additional $100. A $1,000 package costs $15.05 to insure with USPS.

With U-PIC, the same $1,000 USPS package costs $6.50 to insure.

UPS Shipping Insurance

UPS limits its liability to $100 per package unless you declare a higher value. For declared value over $100, UPS charges $1.70 for each $100 of the total value, with a minimum charge of $5.11, according to UPS's 2026 rate changes (effective December 22, 2025). A $1,000 package costs $17.00 in declared value charges. That is a carrier liability limit, not an insurance policy, and UPS decides the claim.

Because UPS already covers the first $100, many U-PIC policies on UPS carry a $100 deductible and charge only for the value above it. The same $1,000 UPS package costs $5.85 to insure with U-PIC with a $100 deductible, or $6.50 with no deductible.

FedEx Shipping Insurance

FedEx limits its liability to $100 per package unless a higher value is declared. The 2026 FedEx Service Guide charges $4.95 for declared values from $100.01 to $300, and $1.65 per $100 of declared value above $300, so a $1,000 package costs $16.50. The maximum declared value is $50,000 per package for most express and ground services, and $1,000 for artwork, collectibles and other items of extraordinary value. Packages declared at $500 or more automatically require a direct signature.

As with UPS, many U-PIC policies on FedEx carry a $100 deductible to match the carrier's included $100. The same $1,000 FedEx package costs $5.85 to insure with U-PIC with a $100 deductible, or $6.50 with no deductible.

DHL Express Shipping Insurance

DHL Express pays only up to its standard liability limits unless you request Shipment Value Protection on the waybill. Under the DHL Express Service and Rate Guide 2026, Shipment Value Protection costs $1.65 per $100 of coverage, with a minimum charge of $11.55 for the first $700. That means a $300 package costs the same $11.55 as a $700 one, and a $1,000 package costs $16.50. Requests over $500,000 per shipment need DHL's approval.

With U-PIC and no deductible, the same $1,000 DHL Express package costs $6.50 to insure, and a $300 package costs $1.95.

Example Pricing

These examples show how DVUs are calculated. One DVU (declared value unit) is $100 of declared value, rounded up. The deductible is applied first, so a $300 shipment with a $100 deductible is charged on 2 DVUs.

Shipping Insurance Cost Compared to Carrier Fees

Here is what it costs to cover the same package with the carrier and with U-PIC.

U-PIC prices use $0.65 per DVU. UPS and FedEx prices assume a $100 deductible, the most common setup on those carriers, and USPS and DHL Express prices assume no deductible. Deductibles vary by policy. Carrier fees are from USPS Notice 123 (effective October 4, 2026), UPS's 2026 rate changes (effective December 22, 2025), the 2026 FedEx Service Guide and the DHL Express Service and Rate Guide 2026. Carrier rates last reviewed and updated October 21, 2026.

What's Not Covered?

U-PIC coverage excludes certain high-risk or restricted items, including:

• Cash, gift cards, or anything that acts like money ("negotiable instruments")
• Perishable goods (unless covered by endorsement)
• Personal electronics like phones and laptops (unless covered by endorsement)

For the full list of covered and excluded items, limits and conditions, see our shipping insurance coverage page.

Is Shipping Insurance Worth It?

For most business shippers, yes, once a package is worth more than the $100 a carrier includes. Three questions usually settle it.

How Much Is the Package Worth?

If a package is worth $100 or less, the coverage UPS, FedEx and USPS Priority Mail already include may be enough. Above $100, the carrier pays nothing more unless you pay for declared value or insurance, and at $1,000 the carrier's own fee runs $15 to $17. U-PIC covers the same package for about $6.

How Many Packages Do You Ship?

A single lost package is an inconvenience. Across thousands of shipments a month, losses become a predictable cost, and so do the savings. The difference between a carrier fee and a U-PIC premium is small on one package and significant over a year.

Who Pays When a Package Goes Missing?

When an order is lost or arrives damaged, the seller usually replaces it or refunds the buyer. Shipping insurance moves that cost to the insurer, so a lost package does not come out of your margin.

We go into more detail on whether shipping insurance is worth it for different kinds of shippers.