What Is Shipcover Insurance?

It’s entirely up to you. ShipCover makes it simple to get coverage for domestic or international USPS shipments; claims are processed far more quickly than through USPS, and our rates are often lower.

What is better ShipCover insurance or USPS insurance?

When printing USPS postage / shipping labels for your auctions, eBay has lately added a new insurance option. There is very little information available about which provider performs what or which insurance choice is the best. Here’s a fast but comprehensive review of everything each has to offer:

USPS Insurance – The Old Option

  • USPS’s own insurance appears to be slightly more expensive on lower-cost items (under $50), but significantly less expensive on higher-cost items (above $100-200).
  • Claims take weeks, if not months, to process, and the general perception among users appears to be that USPS is deliberately delaying payment.
  • USPS Insurance is backed by the government and has a longer track record of reliability.
  • To file a claim for a damaged or lost shipment, you’ll need to contact or go to the post office (likely numerous times) and fill out documentation.

ShipCover – The New Option

  • On pricey things, ShipCover will be slightly less expensive, but on less expensive items, USPS insurance will be significantly more expensive.
  • According to customer testimonials, ShipCover is significantly speedier and more dependable than USPS when it comes to paying out claims. This could be due to the fact that it is a newer service that needs to establish trust, but based on customer reviews on numerous forums across the internet, ShipCover appears to provide a much better service in terms of actually paying out claims when you need them.
  • ShipCover insurance-printed labels are not labeled as insured. You and eBay are the only ones who know the package is insured. Your buyer will have no idea that insurance has been obtained. More significantly, no one who handles the box in transit will be aware, which could help keep it safe. (Only higher-value products are likely to be insured, making them a more attractive target for theft.)
  • ShipCover is not a legal insurer and is not backed by the government. When choosing the insurance type on eBay’s shipping label page, you can click to examine the legal conditions of ShipCover, which appears to be a California-based company. In layman’s terms, ShipCover can declare bankruptcy at any time, and all pending claims will vanish into thin air, leaving you out of luck. This danger does not exist for a government insurer like USPS insurance.


As a final note–the major concern some users seem to have is whether or not postal fees are covered–remember that regardless of the service you select, you must enter the total coverage amount you intend to purchase. If you sell an item for $50 and postage is $10, your coverage amount must be $60. You’ll also have to pay a little more for the extra protection.

Does ShipCover cover shipping cost?

As long as your claim does not exceed the whole value of the maximum coverage, your USPS insurance will cover the cost of postage as well as your contents. As an example, let’s say you have $100 in Priority Mail insurance on a $10 shipment. Your total claim will be $60 ($50 + $10) if you’re delivering a $50 doll. In this situation, the built-in insurance of $100 will cover you!

The Amount of Insurance You Get Depends on the Service You Use (and Where You Buy It From)

All Priority Mail services come with $50 of insurance when you ship at your local Post Office. Priority Mail Express comes with $100 in postage insurance and a money-back guarantee on delivery time.

Priority Mail and Priority Mail Express services come with $100 of insurance when purchased online using shipping software. Priority Mail, Priority Mail Flat Rate, and Priority Mail Cubic are all examples of this.

Your Service May Not Have USPS Insurance

Keep in mind that some USPS services, including as First Class Package, Retail Ground, and Parcel Select Ground, do not come with built-in insurance. You’ll need to go via a third-party shipping insurance firm to get cover for packages you send using any of those services.

How to File an Insurance Claim with USPS

If your package is lost or damaged and you have built-in USPS insurance, you can register a claim with USPS directly here.

Pro Tip: If you’re mailing out high-value things, the bundled USPS insurance may not fully cover you. In that scenario, purchasing supplementary insurance for your cargo is always a good idea. Learn more about shipping insurance and how it may help you protect your packages.

Is USPS insurance worth buying?

Insurance is a great way to bridge the gap. In many cases, the free USPS insurance is sufficient to cover any potential damages. However, it’s critical to have a procedure in place to deal with any concerns that arise.

How do I add ShipCover to insurance?

Select Add insurance from the Delivery choices section. Select ShipCover Insurance and, if it isn’t already filled in, type in the amount of coverage you require before clicking Add.

How do I file a ShipCover claim?

Only when you pay for postage and print mailing labels on eBay can you use ShipCover. How do I file a claim if an item is lost or damaged? They can also:

What insurance covers USPS?

Insurance provides up to $5,000 in coverage for merchandise in the custody of the United States Postal Service that is lost, damaged, or has missing contents. (The liability limit for Registered Mail with insurance is $50,000.) Customers can buy insurance at a Post OfficeTM near them or online.

Does ShipCover cover stolen packages?

ShipCover covers eBay sellers’ packages sent via USPS to domestic or international buyers. When you print your shipping label on eBay using ShipCover, you can get up to $1,000 in insurance. It safeguards shippers in the event that their packages are misplaced, damaged, or stolen during transit.

Does USPS ground include insurance?

When utilizing any of the following services, you can also purchase insurance for up to $5,000: Retail Ground is a service provided by the USPS. Parcels sent by standard mail (excluding Marketing Parcels bulk insurance only).

What do you do if the USPS damages your package with no insurance?

If your mail isn’t insured, you won’t be able to file a claim unless you’ve conducted a Missing Mail Search. Make sure you keep the receipt; it will serve as proof of insurance. The tracking number may also be used by the Postal Service to confirm insurance coverage.

How does USPS insurance claim work?

Insurance costs are non-refundable and cover the cost of the insurance. If a lost Registered Mail, insured, Collect on Delivery, or Priority Mail Express piece is found after a claim is paid, the payee may accept the item and return the USPS for the full amount paid if the item is in good condition.