Who Does Shipping Insurance Protect?


Shipping insurance protects both buyers and sellers, from the risks associated with shipping products through the mail system. Shipping insurance is a paid service added to a parcel, designed to compensate the buyer or seller in the event that the contents of a parcel are damaged, lost, or stolen while in transit.

When some form of loss takes place during transit, a claim may be filed with the insurer, and the claimant may be indemnified by the insurer up to the declared value that was insured.

Shipping insurance may be bought and paid for by a buyer (of products), or seller. The party who purchases the insurance is the insured, and is the party who will be indemnified once the claim has been adjusted.