When shopping online it is imperative to make sure your chosen courier offers a good shipping insurance package.

You are then faced with two questions; “Is it worth it?” and “What does it cover?”

The answer to the first one is relatively simple. If the item is low value it’s generally not worth it unless it is sentimental. Anything higher value should be covered.

It is worth noting that many shipping companies cover low item goods automatically.

The second question is answered by the following points.

Conditions of Cover

The first thing to be aware of is that there are usually conditions associated with the insurance cover. These will generally include:

If this is the case then you need to make sure your supplier is using this system.

  • The right Item. Most shipping insurance will not usually provide insurance for coins, cash or precious stones.
  • Despite the smallness of the planet in delivery terms there are still areas which are not covered by carriers and their shipping insurance. You should check this before you commit to an online shop and their preferred carrier.


Providing the package has been wrapped properly and addressed correctly then the shipping insurance will cover damage to the item. This will be up to a set amount depending on which cover you picked and the type of item being shipped.

It is worth noting that unique objects will probably need to be evaluated before they are dispatched.


If the shipping company loses your package then the insurance will pay out for the full value of the product. You will need to complete a variety of forms and follow due process to ensure you get your funds.

Of course, this may not bring much solace if it was a sentimental item.


Some shipping insurance will also refund your shipping costs or even offer compensation if the item is not delivered when it should be.

Of course this will also be subject to conditions.

The Bottom Line

There are approximately 5 – 6 million containers at sea at any one time filled with items being transported. You can quickly see how many parcels are moving round the globe and how it is possible that yours can slip through the cracks.

Shipping insurance will cover you for damage or loss and even delayed delivery. But, it is imperative that you read the small print before committing to a specific insurance firm.

This can make a dramatic difference to your ability to claim or the time it takes to get your funds or a replacement item.

It is worth noting that a well packaged product is much more likely to arrive in one piece. You should check what packaging method your supplier is using before you even look at the shipping insurance on offer.