Shopify Shipping Insurance: Everything You Need To Know

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shopify shipping insurance

Last Updated: April 2024

Shopify Shipping Insurance

When shipping orders from the United States and utilizing Shopify Shipping labels, ensure the protection of your shipments by opting for shipping insurance, offering coverage of up to $5,000 against loss, theft, or damage. Users on the Shopify, Advanced Shopify, or Plus plan with activated Shopify Payments, enjoy the automatic inclusion of $200 shipping insurance on eligible labels at no extra cost.

Easily secure your shipments and submit claims directly from the Shopify admin, with Shipsurance serving as the insurance administrator for coverage obtained through Shopify.

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Eligibility For Shopify Shipping Insurance

To be eligible for Shopify Shipping Insurance, you must fulfill the following criteria:

  • Label Purchase through Shopify: Ensure that you buy Shopify Shipping labels for the orders you’re shipping.
  • Shipping from the United States: Utilize shipping services from the United States for the orders.
  • Shopify Payments Activation: If you’re on the Shopify, Advanced Shopify, or Plus plan, and you have activated Shopify Payments, you are eligible.

Meeting these conditions allows you to protect your shipments by purchasing shipping insurance for coverage up to $5,000 against loss, theft, or damage. Additionally, users on eligible plans with activated Shopify Payments automatically receive $200 of shipping insurance on each qualifying label at no extra cost.

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Buying Shipping Insurance

When the included shipping insurance is not applicable, you have the option to purchase additional coverage by specifying the desired amount in the Shipping Insurance section.

Before proceeding, consider the following:

  • Insurance can be purchased in increments of 100 USD.
  • For instance, if your items are valued at 250 USD and the international shipping cost is 20.50 USD, you can add insurance for 270.50 USD to your shipping label.
  • The insurance premium is calculated at 1.29 USD per 100 USD of coverage, totaling 3.87 USD.
  • Charges for shipping insurance and the shipping label are itemized separately on the Billing page in the Shopify admin.
  • You can void unused shipping labels within 30 days of purchase to cancel shipping insurance. Upon cancellation, you’ll receive a shipping insurance premium credit applicable only for future insurance purchases.
  • Note that USPS First Class Mail shipping service is not eligible for insurance coverage.

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Shopify Shipping Insurance Premium Rates

Examine the table below to understand the rates for insurance premiums.

shopify shipping insurance
Source: shopify.com

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Navigating Shipping Insurance: Is Shopify the Right Choice for Your Business?

Is Shopify the optimal choice for your shipping insurance, or are there better alternatives? While the free Shopify option is a great start, especially for new businesses, limitations arise if you don’t qualify or require more than the $200 coverage. Exploring beyond Shopify’s services, whether free or paid, is essential to find the best fit for your specific shipping needs and preferences.

Third-Party Solutions

Numerous insurance providers offer services independent of specific shipping solutions. Some offer comprehensive coverage at a fixed fee based on shipment volume, while others allow you to customize prices. This flexibility lets you tailor insurance for each order, aligning with your business needs.

However, it involves adding insurance costs to every order, potentially increasing your workload. While cost-effective, choosing the right provider is crucial to avoid disruptions in your order flow.

Carrier Insurance

Opting for carrier insurance presents another viable option. Every shipping provider offers insurance for every service they offer, making it a strategic choice. Regardless of the carrier or delivery speed selected for a shipment, appropriate insurance can be easily added.

This is particularly beneficial if your customers can choose from various shipping options, as seen in automated shipping calculators like Calcurates. The simplicity of adding insurance reduces workload and ensures a straightforward process. With dedicated carrier insurance, handling claims for lost or damaged shipments involves dealing with a single company, streamlining the entire claims process.

Claiming Shopify Shipping Insurance

To initiate a shipping insurance claim for lost, damaged, or stolen shipments, access your Shopify admin directly. However, before submitting a claim, it’s crucial to consider the following points:

If the shipping label includes coverage from both a purchased or included shipping insurance and the carrier, any claims related to lost, damaged, or stolen shipments should be directed to Shipsurance, not the carrier.

Insurance claims for most shipments can be submitted 24 hours after an order has been shipped, and the window for filing extends up to 120 days from the shipping date.

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Best Shopify Shipping Insurance Apps

1. Simply Shipping Protection

Rating:⭐4.8

Pricing: A free plan is available & the basic plan starts from $19.99/month

Meet Simply Shipping Protection, a groundbreaking solution empowering merchants to provide Shipping Protection directly to their customers, bypassing the need for third-party insurers.

Key Features

    • In-House Shipping Protection Program: Eliminate the need for insurance apps and take control of your shipping protection program in-house, providing an upsell directly to customers.
    • Streamlined Claims Process: Simply Shipping Protection simplifies the claims process with a one-click customer claims system, ensuring merchants’ and customers’ ease of use.
    • Comprehensive Reporting: Track claims and revenue effortlessly through detailed reports, gaining valuable insights into the performance of your shipping protection program.

2. Freighty Shipping Insurance

shopify shipping insurance

Rating:4.2

Pricing: Free to install

Freighty Shipping Insurance is your go-to solution for Shopify stores, offering seamless automation for insurance coverage on every order. Safeguarding against loss or damage during transit to the customer’s designated address, enjoy peace of mind with coverage up to $5,000 per delivery.

Key Features

    • Automated Coverage: Instantly secure insurance for each order dispatched from your store, ensuring protection for you and your customers.
    • Effortless Claims: Simplify the claims process for lost or damaged items, making it easy to navigate and ensuring a smooth experience for your customers.
    • Swift Compensation: Receive timely payments for approved claims, streamlining the financial aspects and keeping your business moving forward.

3. Route: Post‑Purchase Platform

Rating:3.9

Pricing: Free to install

Route establishes profound connections between brands and their customers, delighting them at every touchpoint throughout the entire purchasing journey – from the moment an order is placed to its final delivery and every step in between.

Key Features

    • Package Protection: Offer confidence at checkout with Route’s protection against loss, theft, or damage, ensuring a worry-free shopping experience.
    • Instant Claims Resolution: Streamline efficiency claims, saving time and, reducing support costs, enhancing customer satisfaction.
    • Branded Tracking and Recommendations: Elevate the experience with branded tracking and drive additional purchases through personalized recommendations.

4. Shipping Warranty Upsells ‑ G1

shopify shipping insurance

Rating:⭐4.7

Pricing: Free to install. Additional charges may apply.

Take control of your shipping experience with G1 App—offer personalized, branded shipping warranties, keep the money in your pocket, and revolutionize the way you handle shipping protection.

Key Features

    • Branded Shipping Warranties: Personalize your shipping protection with your own branded warranties, setting terms, and pricing, and adding your logo for a unique touch.
    • Revenue Retention: Say goodbye to losing money to insurance companies—sponsor your warranty through G1 App and keep the rest of the money for your business.
    • Effortless Setup: Enjoy a hassle-free experience with G1 App’s quick 5-minute setup, allowing you to start making money while providing a superior shipping experience to your customers.

Saufter.io: Revolutionizing E-commerce Support with an Intuitive Help Desk Solution

Saufter.io is your go-to E-commerce Helpdesk, streamlining customer support for e-commerce businesses. With its user-friendly interface and robust features, Saufter.io enhances communication, resolves queries promptly, and ensures a seamless customer service experience.

Key Features

  • Unified Communication: Consolidates customer inquiries from various channels into one platform for streamlined communication.
  • Automated Ticketing: Automates ticket creation and categorization, ensuring efficient customer support.
  • Multi-Channel Integration: Integrates seamlessly with email, chat, and social media, simplifying the management of customer queries.
  • Analytics and Reporting: Provides insights into customer interactions and ticket resolutions through analytics tools.
  • Automation and AI: The platform uses automation and AI to handle routine queries, freeing up resources for complex issues.

Conclusion

In summary, Shopify shipping insurance provides robust coverage for eligible shipments, addressing concerns of loss, theft, or damage. Whether through included coverage or additional purchases, Shopify simplifies the claims process, offering merchants flexibility and peace of mind directly from the Shopify admin.

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