Shipping Insurance Options

What Are Shipping Insurance Options?

Accidents happen during the product shipping process. Items get lost or damaged, or supply chain issues cause serious delivery delays. Each of these issues costs brands time, money, and customer loyalty. Shipping insurance options help brands and consumers protect themselves against these problems and, in some cases, get their money back for damaged, stolen, or lost goods.

For a small fee, consumers and businesses can purchase shipping insurance options from most major carriers — including the U.S. Postal Service, FedEx, UPS, and more — on a per-product basis.

The carrier typically derives the insurance cost by the size or weight of the parcel. Shipping insurance options are vital for brands that ship high-value items, as delivery or supply chain problems can be significantly costly for them. It's also important for brands to offer shipping insurance options to consumers at the point of sale, as doing so helps build trust and loyalty.