What Does Shipping Insurance Do?

Shipping insurance is a service added to a parcel, which protects buyers and sellers (shippers) against loss, theft, or damage that may occur while in transit. Shipping insurance may be purchased directly from a shipping carrier, or through a third party shipping insurance provider.

If a parcel is lost, stolen, or damaged during transit, shipping insurance may reimburse the seller, who may then send a replacement to the buyer, or offer a refund.

Shipping insurance buyers should review their insurance policy to understand what goods are covered, as well as to and from where goods may be insured. Buyers should also be aware that some coverages offered by carriers are not real shipping insurance plans, and may not cover their loss at the retail value. Most third party shipping insurance companies, like U-PIC Shipping Insurance, offer full coverage up to sale price, including the cost of shipping.