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When Should You Insure Your Shipment?


When visiting your favorite shipping company to send a package, one of the questions you need to answer is whether you want to pay for shipping insurance. Like other types of insurance, shipping insurance protects against loss or damage of the items that you are shipping. For most routine shipments, damage is not a problem. However, if you are concerned about your package arriving safely, then you should consider buying insurance. Here are some tips to help you determine if you need shipping insurance.

I should insure my package if. . .

    • It costs more than $50. Most shippers don’t recommend insurance for packages that cost less than $50 or they automatically cover it for under that amount.
    • My shipment is one-of-a-kind. If you can’t replace the item you are shipping, then insurance is a must. You should also pack it carefully and ask what you need to do for fragile items.
    • It is artwork or an antique. This category is similar to the irreplaceable item. For handmade items, artwork or antiques, you should protect them with method of shipping, insurance, packaging and tracking.
    • It is going to somewhere unfamiliar. If you are unsure about the address, you should double-check it to confirm. Insuring the package will allow you to replace the contents if necessary.
    • I am shipping to a vendor or customer. Customers that don’t receive their products or receive damaged products will want to get a replacement. Insuring the package makes that process simpler.
    • I am shipping several boxes together. It is easy for shipments of multiple boxes to get separated. Insuring them will help make sure they all get to their destination even if not all at the same time.
  • I am shipping to a new recipient. If your recipient is unfamiliar, you can protect yourself from loss or stolen property by insuring the package. Once you trust your recipient, you may only decide to insure packages over $50 or $100.
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