UPS is a major carrier that offers widespread benefits to its shippers. One such benefit is the automatic insurance you receive whenever you ship a package with them. If you’re thinking about how to protect your packages with insurance when shipping with UPS, you can rest assured that, to some extent, you’re already covered!
Table of Contents
- All UPS Labels Come with $100 of Insurance, or Carrier Liability
- What About Services Like UPS Surepost and UPS Ground Saver?
- You Can Claim Up to $50,000 in Declared Value for UPS Shipments
All UPS Labels Come with $100 of Insurance, or Carrier Liability
Whether you buy labels online or at any UPS location, you automatically receive $100 in declared value liability. That means that, as long as the value of your package is at or below $100, UPS will cover your shipment for the full amount if it arrives damaged or ends up going missing in transit. The best part is, this $100 of insurance comes at no extra cost to you. So, you don’t need to worry about paying for anything except the label itself.
What About Services Like UPS SurePost and UPS Ground Saver?
UPS offers certain economical services like UPS SurePost and UPS Ground Saver that give shippers the option to save even more money on Ground shipments through a partnership with USPS. With these services, UPS handles the majority of a package’s journey and then hands it off to USPS for last-mile delivery. These services typically come with similar delivery timeframes as UPS Ground plus one business day to account for the Postal Service’s leg of the journey. Since UPS is handling the package less than it typically would with a door-to-door service like UPS Ground, shippers can enjoy more affordable rates for a slightly slower delivery.
When it comes to carrier liability for these services, UPS handles it slightly differently than all of its other services. Technically, the $100 carrier liability that UPS provides only applies to the portion of the journey when UPS handles the shipment. Once UPS hands a package over to USPS for last-mile delivery, the $100 of UPS carrier liability is voided, and the shipper assumes liability for the package during the last-mile delivery…unless the shipper purchased third-party shipping insurance, of course.
Read more about protecting your packages with shipping insurance.
You Can Claim Up to $50,000 in Declared Value for UPS Shipments
While UPS automatically includes $100 of insurance for all labels, you can also pay extra to insure your shipment up to a much higher amount. In fact, UPS allows shippers to declare a value as high as $50,000 per shipment. Other carriers, like USPS and FedEx, have a much lower maximum insurance amount (both cap out at $5,000, even with third-party insurance companies). This makes UPS the premier carrier for shipping high-value items such as jewelry and other luxury goods.
To learn more about the UPS insurance policy for domestic and international packages, visit their website.
FAQs
By default, UPS assumes a maximum liability of $100 for every package it ships, to cover potential loss or damage. However, you can declare a higher value for your shipments by paying an additional fee.
Does UPS insure my package? ›
We Ship it. We Guarantee it. For UPS shipments, if you do not declare the value of the item at the time of the transaction and purchase Declared Value for that amount, your maximum reimbursem*nt for the item's value is $100.
Does UPS insurance declared value? ›
For both UPS and FedEx, insuring the first $100 of declared value is free. In other words, if you declare anything up to $100, you get that insurance for free and you can be reimbursed that value. If you claim an amount over $100, however, even by one penny, they will charge you.
What does UPS consider high value? ›
The UPS High-Value Report is a report showing a tracking number, package ID, and Declared Value if your package has a declared value of $1,000 or more.
How much can you insure a package for? ›
Priority Mail Express Insurance (for merchandise) is provided automatically up to $100. Documents are insured against loss, damage, or rifling at no additional cost to mailer. Coverage is limited to the actual value of the shipment. Additional coverage may be purchased at any Post Office in increments up to $5,000.
How to calculate shipping insurance? ›
The simplest method to calculate insured value is to add the commercial invoice value of the goods to the cost of freight and add ten percent to cover additional expense.
Will UPS pay for a lost package? ›
If you receive a report from a recipient of a missing or stolen package, UPS will want to work with you to find the package or provide reimbursem*nt for the replacement or purchase cost, whichever is less. Responding promptly to these occurrences is essential to good customer service and return business.
What happens if UPS loses an insured package? ›
In case, you have insured a package and it was lost, you can claim a complete value of it within days. As such, there are no money losses on your end.
Does UPS cover package damage? ›
Damaged: The shipper or receiver can initiate a claim on a damaged package, although UPS encourages the shipper to report package problems.
How often does UPS lose packages? ›
As we highlighted above, it is incredibly rare for UPS to actually lose your package (not just have your package delayed somewhere throughout their infrastructure, but actually lost or stolen) – but they do have a specific process you can follow to get resolve things ASAP.
With declared value coverage, the insured party declares the value of their goods and pays an additional premium to cover the declared value. In the event of loss or damage to the goods, the insurer will compensate the insured party up to the declared value, subject to the terms and conditions of the insurance policy.
What is a declare amount? ›
Declared value is the value placed on imported goods by the importer. The value of the goods is declared for clearance at the port of entry. and it is used to determine the amount of duty to be paid on the imported goods. 2.
How does UPS determine the price of a package? ›
Rates are based on the total actual weight or the total dimensional weight of all packages in a shipment, whichever is greater. Dimensional Weight is determined by using the International Air Transport Association (IATA) volumetric standard, which is subject to change without prior notice.
What does UPS consider a heavy package? ›
Weigh Your Item
If your package weighs more than 70 lbs, there may be an added fee for heavy or large packages. For more information go to Costs and Rates. Remember, if it weighs more than 150 lbs, your package is considered freight. For information about shipping freight go here.
What are the packaging rules for UPS? ›
How To Ship a Package
- Seal your box with plastic or nylon tape at least two inches wide. Don't use duct tape.
- Wrap items separately and use cushioning material. Get packaging tips.
- Keep in mind, there are additional rules for special-care and prohibited items.
- You'll need to know the dimensions and weight of your box.
Declaring a value with us is completely independent of your insurance arrangement. The amount you declare should reflect the total amount it would cost to replace or repair the items in your shipment.
What does insurance do with UPS? ›
InsureShield® for UPS Packages
Reduce claims hassles and working through carriers for payment. Get coverage for your parcel shipments and get paid in the event of a loss or damage. Receive reimbursem*nt up to the invoice value of your goods with fast and easy online claims filing.
What is the difference between declared value and insurance? ›
Declared value coverage is not insurance for shippers. One of the most significant distinctions of being paid on a claim under declared value is that the shipper must prove that the carrier's negligence directly resulted in the loss or damage to cargo.
