Delivery Insurance: What You Need to Know

Got a package that matters? Whether you’re a food courier, a small shop owner, or just sending a pricey gift, knowing how to protect it can save you a lot of hassle. Delivery insurance isn’t just for big corporations – it’s for anyone who ships something valuable. Let’s break down why it matters, how much it costs, and what to look for when you choose a policy.

Why You Need Delivery Insurance

Imagine you’re driving for DoorDash and a crash damages the food you’re carrying. Your regular car insurance probably won’t cover the lost order, leaving you and the customer unhappy. The same goes for USPS or UPS shipments – a misplaced or damaged parcel can cost you the item’s value plus a bad reputation. Insurance steps in to reimburse you for lost or damaged goods, keeping your cash flow and your customers’ trust intact.

For businesses, the stakes are higher. A single lost laptop or broken furniture delivery can mean a pricey claim and a hit to your brand. Plus, many clients now expect you to have coverage before they hand over a contract. Having insurance shows you’re serious about reliability and it can even lower shipping rates with some carriers who reward protected shipments.

Choosing the Right Coverage

First, figure out what you’re shipping. Small items like food or accessories usually need low‑value coverage – a few dollars per package is enough. Bigger items like electronics, antiques, or bulk orders need higher limits, often $1,000 or more per shipment. Most carriers let you add insurance at checkout, but the cost varies: USPS charges about $0.75 per $100 of value, UPS and FedEx have similar rates, and specialized gig insurance for DoorDash drivers can add $5–$15 a month.

Next, compare what’s included. Some policies cover only loss, while others also cover damage, theft, and even delays. Read the fine print – a lot of “free” coverage only applies to certain service levels. If you ship internationally, make sure the policy covers customs issues and foreign handling. And if you run a delivery business, look for a commercial policy that bundles vehicle, liability, and cargo protection in one package.

Finally, think about how you’ll file a claim. The smoother the process, the quicker you get paid. USPS, for example, lets you claim online within 60 days, but you need proof of value and packaging photos. UPS offers a claims portal that tracks status in real time. Choose an insurer that offers clear instructions and responsive support – you’ll thank them when a package goes missing.

Bottom line: Delivery insurance isn’t a one‑size‑fits‑all product. Match the coverage to your shipment value, understand what each carrier includes, and pick a policy that makes the claim process easy. With the right plan, you can ship confidently, keep customers happy, and avoid costly surprises.