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Is Shipping Insurance Really Worth It?

Is shipping insurance worth it?

1 out of every 10 items shipped in the US are damaged. Almost 2 million packages are stolen or lost each day. So for every 100 packages you ship as an online seller, that’s 10 of your products lost. That’s a lot of packages and tons of money. And the more often you ship, the higher the risk. With those statistics in mind, we’re going to answer a question you’ve probably asked yourself. Is it worth getting shipping insurance?

To answer that question, in this post, you’ll find the following topics:

- The Risks of Not Having Shipping Insurance

- The Benefits of Shipping Insurance

- UPS Shipping Insurance

- USPS Shipping Insurance

- Delivery Guarantee

Super important 👉 : At the end of this blog, you'll find a handy reminder of the UPS and USPS holiday shipping deadlines. It's getting close to that last-minute holiday rush. So it's crucial that you stay informed on shipping deadlines. We've got you covered. 😉

What is Shipping Insurance?

Shipping insurance offers you protection if your package(s) are stolen, damaged, or lost while in transit. If the worst happens, it allows you to get reimbursed by your carrier on the declared value of the shipped items. As a result, you can avoid losing money from having to replace shipments and refund customers.

Why Do You Need Shipping Insurance?

The Risk of Not Having Shipping Insurance

Damaged cardboard box

Damage to packages and lost items are quite common in shipping. If you add to that the frequency of porch theft, you’ve got a high chance of missing and broken items. Especially when you’re a small business owner shipping in higher volumes. So, whether it’s damaged, lost, or stolen goods, one is likely to happen to you eventually.

If you don’t have shipping insurance in this situation, this could lead to you covering the cost for returns. As well as paying for replacing and re-shipping items.

If you're shipping higher volumes, this could get expensive. And it’ll be even more costly if you’re having to replace high value items like jewelry.

The Benefits of Insuring Your Shipments

Woman stretching her arms up in the air peacefully because she has peace of mind with shipping insurance

1. Peace of mind

On the flipside, having shipping insurance gives you great peace of mind. You’ll be way less stressed and worried about your products going missing or getting damaged. And even if that does happen, you can know that you’ll be able to claim back the package's worth. The holiday shipping season is stressful enough as it is, there’s no need to make it more so.

2. No replacement / refund costs

That brings us to the next big pro of having shipping insurance - no replacement costs. If you’re insured, you can be sure that you’ll get reimbursed by your carrier. So you won’t have to pay up out of your own purse.

3. Easy application

Getting shipping insurance is very simple. All you need to do is declare the value of your item(s) and the cost will be added to your total shipping cost. It literally only takes a click.

How Much Does Shipping Insurance Cost?

A lot of carriers like UPS include insurance with shipping for items valued up to $100. However, for items that are more expensive, you’ll often have to buy additional shipping insurance to cover the whole cost of the package.

Cost of Shipping Insurance With UPS

Declared Value of Product



$0 (Included)




​$1.15 per $100 declared value

Additional UPS shipping insurance for items declared to be worth over $100 starts at $3.45. Then, for items over $300, the price increases $1.15 for every $100 declared. For example, the cost of UPS insurance for an item with a declared value of $400 would be $4.60.

The maximum value you’re allowed to declare depends on which shipping method you use. The limit is $1,000 if you’re shipping from a third-party retailer. However, it’s $50,000 if you’re shipping from a UPS store.

Cost of Shipping Insurance With USPS

Declared Value of Product

















$11 + $1.65 per $100 or fraction thereof over $600 in declared value.

For USPS shipping insurance, pricing starts at $2.60. USPS maximum liability is $5,000. Delivery Guarantee users can access our very own delivery guarantee. It’s very similar to shipping insurance. The only difference is that it’s not regulated by the government.

Here’s how it works 👉 : If a package you send is lost or stolen while in transit, we will reimburse you the cost of the package contents plus postage.

How much does it cost?

If you’re an executive member, the delivery guarantee is automatically included with each package you send.

Plus, executive members have access to unlimited shipping and the best available UPS and USPS rates. All for just $29 per month. That’s pretty awesome. Pricing Plan

Fee for Delivery Guarantee

Executive ($29/month)

Automatically included

Growth ($19/month)

$0.59 per $100 of Wholesale Value

Starter (FREE)

$1.08 per $100 of Wholesale Value

Those on Growth and Starter plans will also have access to include the Delivery Guarantee. And it’s super easy to purchase. All you need to do is select the check beside Delivery Guarantee when buying postage!

3 Things to Remember When Getting Shipping Insurance

Magnifying glass zooming in on phrase "terms and conditions". It's super important to read carriers terms and conditions when buying shipping insurance.

1. Always Read Carriers Terms & Conditions

Let’s be honest. When we see terms & conditions, we scroll straight past them and don’t give that a second thought. You really can’t do that with shipping insurance.

If you don’t, your claim could be denied. For example, USPS and UPS don’t provide coverage for precious stones or coins.

So, if the product your shipping contains these materials, you won’t get reimbursed. There also could be other exclusions that mean your contents won’t be covered.

That’s why we’d advise you to read the fine print. Whether you’re shipping with UPS, USPS, or using our own Delivery Guarantee.

2. Pack your items well and read carriers packaging requirements

If the product your shipping is packaged poorly, carriers may deny your claim. It’s always best to read carrier packaging requirements.

If you do, you’ll know you did everything you could to protect your package and meet their guidelines. And the liability won’t lie with you if your package is lost or damaged.

3. File Claims Sooner Rather Than Later

Finally, if you need to file an insurance claim with your carrier, do it ASAP. Each carrier has its own cut-off times for filing a claim. Along with the terms & conditions, this is something you should make yourself aware of.

For USPS, you have 15-60 days to make a claim. Whereas for UPS, you have 5 months to claim for a domestic US Shipment and up to 60 days for international shipment. As for our Delivery Guarantee, users have up to 60 days to make a claim.

Conclusion: So… Is Shipping Insurance Worth It for Small Business Owners?

So - is shipping insurance worth it? The answer is yes if you’re a small online retailer and regular shipper.

Because you’re shipping at higher volumes, your products are more likely to get stolen, lost or damaged. Plus, if you have high value products like clothing or jewelry, you stand to lose more if you’re not insured. Yes, take advantage of included shipping insurance for items with a declared value of under $100 where you can. But if you’re shipping high volume and high value, it’s way better to be safe than sorry.

IMPORTANT REMINDER: UPS and USPS Domestic Holiday Shipping Deadlines 2022

It's getting very near to the shipping deadline dates. With that in mind, we wanted to drop you a quick reminder of the latest holiday shipping deadlines for UPS and USPS in the US.

USPS Holiday Shipping Deadlines for US 2022


Shipping Deadline

USPS Retail Ground™

Ship by Saturday December 17th

USPS First Class Mail®

Ship by Saturday December 17th

USPS Priority Mail®

Ship by Monday December 19th

USPS Priority Mail Express®

Ship by Thursday December 23rd

Shipping to/from Hawaii, Alaska, or a Military address? Check out all the USPS deadlines here.

UPS® Holiday Shipping Deadlines for US 2022


Shipping Deadline

UPS® Ground

Delivery times vary, check

UPS 3 Day Select®

Ship by Tuesday December 20th

UPS 2nd Day Air® services

Ship by Wednesday, December 21st

UPS Next Day Air® services

Ship by Thursday, December 22nd

Check the UPS Holiday Schedule for further Details.

Remember - holiday shipping deadlines are subject to change. But you can keep on top of any changes on the UPS or USPS websites.


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