Carrier coverage and a shipping protection app solve different problems. Carrier coverage, such as UPS or FedEx declared value or USPS’s included insurance, reimburses you when the carrier loses or damages a parcel, after a claim. A protection app lets your customer pay a small fee for a fast, pre-agreed fix, including porch theft that carriers rarely cover.
For the wider picture, see our shipping insurance guide.
What does each carrier include?
| Carrier | Included by default | To cover more | Is it insurance? |
|---|---|---|---|
| UPS | Liability up to $100 per package | Declare a higher value and pay a fee | No: UPS says declared value is not insurance |
| FedEx | Liability up to $100 per package | Declare a higher value and pay a fee | No: FedEx says it does not provide insurance |
| USPS Ground Advantage | Up to $100 of insurance | Buy additional insurance | Yes, included insurance |
| USPS Priority Mail | Up to $100 of insurance | Buy additional insurance | Yes, included insurance |
USPS requires a tracking barcode for included insurance to apply. With UPS and FedEx, you generally need to show the carrier was at fault to be paid.
What does carrier coverage not do well?
- Porch theft: once a package is scanned as delivered, carriers usually consider the job done.
- Speed: the customer waits while you file and the carrier investigates.
- Small claims: filing for a $25 item rarely seems worth the effort.
- Your rules: the carrier decides, not you.
How is a protection app different?
| Carrier coverage | Protection app (self-funded) | |
|---|---|---|
| Who pays | You (or included with the label) | The customer, as an optional fee |
| Who gets paid | You, after a claim | The customer gets a refund, reship or store credit |
| Theft after delivery | Usually not covered | Covered if your rules say so |
| Speed for the customer | Waits on the carrier | Fast: you decide |
| Effect on margin | A cost | The fee is revenue |
How do you file a carrier claim?
- UPS: you can start a claim for a lost or damaged package within 60 days of the scheduled delivery date.
- USPS: you can submit a Missing Mail search from 7 days after mailing, up to 365 days; insured packages also qualify for a claim.
- FedEx: deadlines differ for loss and damage and for US and international shipments, so check FedEx’s claims page.
Have the tracking number, proof of value and photos of any damage ready, and keep damaged items and packaging until the claim is settled.
When should you use both?
Use a protection app for every order so customers get a fast answer, and add declared value or insurance on parcels worth more than the default $100. When a protected high-value parcel is lost, reship the customer straight away, then file with the carrier to recover your cost. Small claims are simply paid from protection fees.
What does it cost?
Declared value and extra insurance are per-shipment costs that you pay. Protection fees are paid by the customers who choose them, and with a self-funded app they go to you. Run your numbers in the shipping protection calculator, and read shipping insurance vs shipping protection for the concepts. To add protection to your store, see Sam Shipping Protection, the shipping protection guide and the declared value definition.
Frequently asked questions
Is UPS declared value the same as insurance?
No. UPS states that declaring a value above $100 does not give the shipper any form of insurance; it raises UPS's liability for its own failures, for an extra charge.
How much does USPS include?
USPS Ground Advantage and Priority Mail include up to $100 of insurance, provided the shipment has a USPS tracking barcode. You can buy more for higher-value items.
Should I use carrier coverage or a protection app?
Often both: a protection app for every order, so customers get a fast fix including porch theft, and declared value or insurance on high-value parcels so you can recover the cost.
Sources
Part of our guide: Shipping insurance →