Shipping insurance is a service which may
reimburse
Reimbursement is the act of compensating someone for an out-of-pocket expense by giving them an amount of money equal to what was spent.
Companies, governments and nonprofit organizations may compensate their employees or officers for necessary ...
senders whose
parcels are lost, stolen, and/or damaged in transit.
In Canada and the US, shipping insurance is offered by
postal services,
courier
A courier is a person or organisation that delivers a message, package or letter from one place or person to another place or person. Typically, a courier provides their courier service on a commercial contract basis; however, some couriers are ...
companies, and shipping-insurance companies. Not all insurers will insure all goods. For example,
postal services
The mail or post is a system for physically transporting postcards, letters, and parcels. A postal service can be private or public, though many governments place restrictions on private systems. Since the mid-19th century, national postal syst ...
will not insure certain economy-class parcels, though third-party insurers often will.
It is possible to ship a parcel with insurance but without
parcel tracking service. This can be a sensible thing to do. Shipping insurance is normally less expensive than tracking. Also, if a parcel is damaged in transit, tracking may be unhelpful, but shipping insurance may reimburse the sender in full.
First-party shipping-insurance services offered by postal services and courier companies may have many more restrictions than third-party shipping-insurance services. First-party insurance services may not pay out on claims unless the item was packed very carefully. Claimants also may need to provide proof of an item's value.
[See: ]
When practical,
self-insurance Self-insurance is a situation in which a person or business that is liable for some risk does not take out any third-party insurance, but rather chooses to bear the risk itself.
In the United States the concept applies especially to self-funded he ...
is normally more economical than paying for insurance; see
Insurance#Limited consumer benefits.
See also
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Cargo insurance
Marine insurance covers the physical loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination. Cargo insurance is the sub-branch o ...
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UPS Capital
UPS Capital is a financial services division of UPS that offers traditional and non-traditional financial services and insurance products.
History
UPS Capital was created in 1998 as a financial services division within UPS.
UPS Capital at fir ...
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Aviation insurance
Aviation insurance is insurance coverage geared specifically to the operation of aircraft and the risks involved in aviation. Aviation insurance policies are distinctly different from those for other areas of transportation and tend to incorporate ...
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Lost in transit scam
A package redirection scam is a form of e-commerce fraud, where a malicious actor manipulates a shipping label, to trick the mail carrier into delivering the package to the wrong address. This is usually done through product returns to make the m ...
References
Types of insurance
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