Shopify Shipping Insurance and Protection: A Comprehensive Guide

Kentucky, North Dakota, Nebraska, Iowa, and Alaska. New York City

Philadelphia, Chicago, Washington, D.C., Houston, Atlanta, Charlotte, Dallas-Fort Worth, Boston, and Cleveland.

As per reports, these were the cities and thefts that experienced the highest rate of package thefts in 2025.

Packages were brazenly stolen from the customers’ doorsteps, prompting them to request a refund, leaving the eCommerce business owners in a pickle.

It is hardly a wonder that shipping insurance has become an essential tool for eCommerce merchants looking to protect their businesses from common shipping risks.

Shipping problems such as lost or damaged packages can hurt your business financially and reputation. Shipping insurance helps merchants manage these risks without taking on the financial burden themselves.

For those who use Shopify, the Shopify shipping insurance simplifies this process by bundling coverage for eligible labels purchased through Shopify Shipping.

This shipping insurance guide explains how it works, why it’s essential, and how you can use it to improve your business operations and customer satisfaction.

What is Shopify Shipping Insurance?

If you are shipping orders from the United States and purchase Shopify shipping labels, you are eligible to protect your packages with shipping insurance coverage up to $5000.

For your packages to be insured, they must be accepted and scanned by the shipping carrier, ensuring that the shipment's status is tracked and verified.

Interestingly, if owners have their stores on Shopify, Advanced Shopify, and Plus Plan, and have activated Shopify Payments, then Shopify Shipping Insurance provides up to $200 of coverage.

Similarly, if you use Managed Markets and are on Shopify, Advanced Shopify and Plus Plan, you are eligible for the $200 of shipping insurance.

However, for those stores using Managed Markets but are on the basic plan, the shipping insurance coverage of $200 is not included. Still, merchants can purchase insurance for their respective orders.

If you fall in the third category, you can manually enter the amount of Shopify shipping insurance coverage you are looking for and add it to the shipping insurance section of the platform.

However, remember that you can buy this shipping insurance on Shopify in increments of $100.

In the case of product values like $250 or $350 (which are not multiple of 100), the insurance coverage is rounded up to the next $100 increment.

For instance, a domestic shipment valued at $250 USD requires 3 increments of $100 USD coverage.

• Calculation: 3× $0.89=$2.67
• Total Insurance Cost: $2.67 for $250 of coverage.

This insurance covers loss, damage, and theft that can occur while orders are in transit—Shopify partners with Shipsurance, a trusted insurance provider, to offer this protection.

The program aims to make shipping safer and more reliable without requiring additional setup or complex processes.

How to File Claims with Shopify Shipping Insurance

Before you file for your Shopify shipping insurance, you must check out the following clauses and considerations:

1. If a shipping label includes purchased or included insurance and coverage from the carrier, claims for lost, damaged, or stolen shipments must be filed with Shipsurance instead of the carrier.
2. Additional shipping insurance, whether included or purchased, cannot be combined with the coverage provided by the carrier.
3. Insurance claims can be submitted 24 hours after the shipment and up to 120 days from the shipping date.

With that out the way, let’s move on to the crux of the conversation.

To submit a claim, follow these steps:

• Log in to your Shopify admin, and go to Orders.
• Locate the order number for which you want to claim insurance and click on it. 
• Click the ... button, and then click File Claim.
• In the Claim details section, select the following information:
  
  • claim type
  • discovery date of your damaged or lost package
  • claim reason
• In the Claim amount section, enter the amount of money that you want to claim. Please note that you can’t claim more than the coverage you have paid for.
• In Payout details, choose how you want to receive your insurance payout from Shipsurance, and then add your contact or address further information depending on your payout type.
• In the Contact information section, enter your email address. This is the email Shipsurance uses to contact you if they need additional information about your claim.
• Select I have read and understand the disclaimer above, then click File claim.

However, claiming this Shopify shipping insurance requires a few prerequisites that can make things easier for you. 

Follow these steps to ensure a smooth process:

1. Document the Issue: Take photos of damaged items and packaging. Keep all shipping materials until the claim is resolved.
2. Gather Required Information: Collect the commercial invoice, tracking information, and proof of shipment.
3. File the Claim: Log in to your Shopify admin and access the claims section. Complete the form with the necessary details and upload the required documents.
4. Track the Claim: Once submitted, monitor the status of your claim in the admin dashboard to stay informed about its progress.

Eligibility Requirements for Shopify Shipping Insurance

To qualify for Shopify Shipping Insurance, merchants must meet specific criteria:

1. Use Shopify Shipping to purchase shipping labels.
2. Ship from a U.S.-based origin address.
3. Ensure labels include tracking numbers.
4. Activate Shopify Payments for their store.
5. Follow Shipsurance’s terms and conditions for coverage.

How Shopify Shipping Insurance Works with Shipping Carriers

Shopify Shipping Insurance works seamlessly with various shipping carriers to provide comprehensive shipping insurance coverage for your shipments. When you purchase shipping insurance through Shopify, you can rest assured that your packages are protected against loss, damage, or theft. Our shipping insurance coverage is designed to provide convenience and shipment protection, giving you peace of mind and allowing you to focus on growing your business.] 

Shopify Shipping Insurance supports multiple shipping carriers, including USPS, UPS, and DHL. When you purchase shipping insurance, you can choose from various coverage options to suit your business needs. The shipping insurance coverage includes protection against loss, damage, or theft, as well as coverage for original merchandise and shipping costs.

If you are looking for an insurance post being spoiled for courier choices, why not try Easyship? By integrating with 250+ shipping carriers, you can insure international shipments starting from only 1.5% of the shipment value, including full policy coverage. Easyship insurance enhances the reliability of your shipping process, helping you deliver stress-free experiences to your customers.

Get up to $10,000 coverage per shipment with Easyship!

Exclusions of Shopify Shipping Insurance 

While Shopify Shipping Insurance offers broad protection, there are exclusions to be aware of:

• Prohibited Items: Hazardous materials, perishables, live animals, and certain electronics are not covered.
• Restricted Destinations: Shipments to specific countries, such as North Korea and Syria, are excluded.
• Packaging Rules: Branded packaging or descriptive labels are covered for damage but not for theft.

Understanding these exclusions helps merchants plan their shipping strategies and avoid denied claims.

Disclaimer: Shopify doesn’t support insurance claims. If you have purchased the shipping insurance and need support, mail [email protected] or ring them at 1-866-852-9956.

Key Benefits of Shopify Shipping Insurance

Shopify Shipping Insurance offers several advantages that make it a valuable tool for eCommerce businesses:

Stress-Free Shipping

With coverage for package damage, theft, and loss, merchants can confidently ship, knowing their goods are protected. This peace of mind allows them to focus on other business areas.

Cost and Time Savings

When a shipment is lost or damaged, merchants can recoup the value of the goods and the shipping cost through a quick claims process. This reduces the financial burden of replacing items and eliminates the need for lengthy negotiations with carriers.

Enhanced Customer Experience

Insurance coverage improves trust and loyalty by promptly ensuring customers receive replacements if something goes wrong. Clear communication about shipping protection can also boost conversion rates.

Including shipping insurance details on product pages, FAQs, and shipping policies can also increase conversion rates. Shoppers are more likely to complete their purchases when they feel confident about the shipping process.

Best Practices for Merchants Using Shopify Shipping Insurance

Shopify Shipping Insurance streamlines merchant operations by reducing the time and resources spent on resolving shipping problems. It minimizes revenue loss from replacement shipments and helps maintain positive customer relationships.

However, merchants also need to ensure that their shipping insurance practices are in lieu of a positive customer experience and a smooth purchase journey. 

To make the most of Shopify Shipping Insurance, follow these best practices:

• Communicate Coverage: Highlight shipping insurance in your FAQs, shipping policies, and checkout pages to build customer trust.
• Ensure Proper Packaging: Use sturdy, damage-resistant materials to protect items during transit and comply with insurance requirements.
• Meet Eligibility Criteria: Ensure all shipments follow the program’s guidelines to avoid claim issues.
• File Claims Promptly: Act quickly when filing claims and provide all required documentation to speed up the resolution process.

By adopting these strategies, merchants can maximize the benefits of Shopify Shipping Insurance and strengthen their shipping processes.

Making Shopify Shipping Insurance Easier with Easyship

Shopify Shipping Insurance is a powerful tool for eCommerce merchants looking to protect their shipments and provide a better customer experience. 

By understanding its features, benefits, and requirements, you can ensure smooth operations, minimize financial risks, and build stronger customer relationships.

However, there is more than one way of securing your Shopify shipping insurance benefits. Since basic operations can involve an extra layer of security, Easyship’s Shipping Insurance can be your security blanket, offering coverage up to USD 10,000.

To create your insurance coverage (once you have integrated your Shopify store with Easyship), all you have to do is click the Insurance toggle and slide it to yes as you create your shipment. 

It is important to note that shipping insurance rates are calculated based on the total shipment value, including shipping and customs costs. 

Domestic shipments are insured starting at 1% of the shipment value, while international shipments begin at 1.5%, with a minimum charge of USD 0.49 (or the equivalent in local currency). 

There are no extra fees for filing an insurance claim.

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If you want to customize your insurance settings, Easyship also allows you to do that!

For instance, if you want to insure only 85% of your entire shipment, click Settings, go to Insurance, and punch in your requirements. 

You can choose insurance in case of loss equivalent to the selling price of each unit, or the complete shipment, or a set percentage of the total selling price. 

This way, you can prevent large-scale losses and offer more flexibility to your consumers. 

P.S.: If you run your business on other eCommerce sites like Woocommerce, you can use the same Easyship insurance plugin to increase security. 

Check out Easyship’s multiple eCommerce integrations

Commonly Asked Questions

Does Shopify offer shipping insurance?

Yes, Shopify shipping insurance is available for labels that are a part of the Advanced Shopify, or Plus plan and have Shopify Payments activated.

Do you need a shipping policy for Shopify?

Shopify's shipping policy is a document that helps you draw the guidelines for your business and helps your customers navigate the platform. The best way to start is to have a shipping policy template. 

What is shipping protection in Shopify?

Do I need insurance for my Shopify store?

Yes, it is recommended that you have insurance to avoid liabilities in case a customer chooses to sue you. You can go for a business owner’s policy, general liability insurance (third-party lawsuits), cyber insurance, and commercial umbrella insurance to name a few. 

How to claim Shopify shipping insurance?

• Log in to your Shopify admin, and go to Orders.
• Locate the order number for which you want to claim insurance and click on it. 
• Click the ... button, and then click File Claim.
• In the Claim details section, select the following information:
  
  • claim type
  • discovery date of your damaged or lost package
  • claim reason
• In the Claim amount section, enter the amount of money that you want to claim. Please note that you can’t claim more than the coverage you have paid for.
• In Payout details, choose how you want to receive your insurance payout from Shipsurance, and then add your contact or address further information depending on your payout type.
• In the Contact information section, enter your email address. This is the email Shipsurance uses to contact you if they need additional information about your claim.
• Select I have read and understand the disclaimer above, then click File claim.

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