Insights to Help Your Business

Complete Guide to the Cost of Shipping Insurance

Compare carrier rates and discover the benefits of an InsureShield® policy.

In the fast-paced world of e-commerce, ensuring the safe and timely delivery of goods is a must-have for you and your customers. Yet, even the most carefully planned shipments can still get lost or damaged during transit. Enter shipping insurance: a strategic advantage that allows you to protect your hard-earned dollars, while also maintaining customer trust.

How Does Shipping Insurance Work?

Shipping insurance is more than just a service—it's a lifeline for businesses navigating the world of logistics. But what exactly is shipping insurance, and how does it work? Simply put, shipping insurance provides financial coverage against the loss, damage, or theft of shipments during transit. It can cover loss or damage up to the insured value of the goods, plus shipping costs, ensuring that businesses are not left bearing the weight of unexpected losses.

 

Three packages sitting on the porch of a closed business

With shipping insurance, merchants can rest assured knowing that their shipments are covered against a wide range of risks, from accidental damage to theft and beyond. But is shipping insurance worth it? Absolutely. The peace of mind and bottom-line protection it will bring pays off in the end, especially for businesses and merchants shipping a high volume of orders or valuable products.

The True Cost of Shipping Insurance

We understand that every penny counts for merchants and businesses, which is why we're committed to providing cost-effective solutions that don't break the bank. While the costs of shipping insurance may vary depending on the provider and the value of the items being shipped, an InsureShield policy® stands out for offering competitive rates without compromising on the quality of the coverage. With InsureShield coverage, choose between percentage-based pricing or a rate per $100 with a 7.5K minimum annual premium to qualify. Let’s take a closer look at how much USPS, DHL, and FedEx cost below.

USPS¹

Value of Merchandise
Insurance Cost

$0.01 - $50.00

$2.75

$50.00 - $100.00

$3.50

$100.01 - $200.00

$4.60

$200.01 - $300.00

$6.05

$300.01 - $400.00

$7.60

$400.01 - $500.00

$9.15

$500.01 - $600.00

$12.25

$600.01 - $5,000.00 (maximum liability is $5,000)

$12.25 plus $1.90 per $100.00 or fraction thereof over $600 in declared value

DHL²

Value of Merchandise
Insurance Cost

Up to $100.00

$0

*Additional coverage (above $100 USD) is available at 3% of the package value for outbound shipping, or 1% for inbound. 

FedEx³

Value of Merchandise
Insurance Cost

Up to $100.00

$0

$100.01 - $300.00

$3.90

$300.00+

$1.30 per $100.00 of declared value

Unlocking Value with an InsureShield Policy

We pride ourselves on offering more than just shipping insurance. Our commitment to providing you value extends to every aspect of our service:

  • Competitive Rates: Access our competitive rates tailored to fit businesses of all sizes and budgets, without compromising on the quality of your coverage. We want to empower you to make informed decisions and allow you to make the most out of your shipping strategies.
  • Streamlined Process: Say goodbye to boring paperwork and long wait times. With an InsureShield policy, you can get a quote, purchase coverage, and file claims seamlessly, saving you time and money. Our 24/7, user-friendly online claims portal makes managing your claims easy, allowing you to focus on growing your business.
  • Multi-Carrier Coverage: Benefit from our extensive network of trusted carriers, including USPS, DHL, FedEx, and others. You get access to digital insurance options covering all carrier and modes, ensuring maximum value for your investment. With customized insurance based on your unique business needs—rest assured we've got you covered.

When it comes to shipping insurance, working with us to protect your shipments and your bottom line is a no brainer. With competitive rates, a streamlined process, and multi-carrier coverage, we provide first-rate value that sets us apart from the competition. Experience the peace of mind that comes with InsureShield Shipping Insurance and start shipping with confidence today!

Shipping Insurance FAQs

Shipping insurance is crucial for protection your packages during transit. Whether you are shipping a large amount of goods, or very valuable products, shipping insurance will provide you peace of mind by covering those important business shipments. 

Shipping insurance typically covers loss, theft, or damage during transit. 

The cost of shipping insurance will typically depend on the carrier and the value of shipped items. We have listed the cost of shipping insurance for several different carriers above. While cost may vary, the peace of mind knowing you’re protected with InsureShield is invaluable. 

¹ https://bit.ly/USPSRates

² https://www.dhl.com/us-en/home/ecommerce/shipping-services/domestic-shipping-services.html

³ https://www.fedex.com/content/dam/fedex/us-united-states/services/FXE_FXG_Surcharges_and_Fees_2023.pdf