Delivery Insurance: What It Is, How Much It Costs, and When to Use It

Sending a valuable package can feel risky. One misplaced box or a damaged item can cost you time and money. That’s where delivery insurance steps in – it’s a simple way to protect your shipment against loss, theft, or damage.

Why You Need Delivery Insurance

Even the most reliable couriers can have hiccups. A truck breakdown, a wrong address, or a rough handling incident can happen. If you’re sending something worth more than a few pounds, the cheap peace of mind offered by insurance is worth the extra fee.

Insurance isn’t just for big businesses. A freelance photographer shipping a high‑end camera, an online seller sending custom jewellery, or a homeowner moving fragile antiques can all benefit. The coverage amount you choose should match the value of what you’re sending – no point paying for $5,000 coverage on a $30 shirt.

How to Choose the Right Coverage

First, figure out the declared value of your package. Most UK couriers let you add insurance in steps of £100, £250, £500, and so on. The cost usually ranges from 1% to 3% of the insured amount. For example, insuring a £1,000 parcel might cost you about £15‑£30.

If you use the Royal Mail or its parcel service, you’ll see options like Signed For (covers loss up to £100) or Special Delivery Guaranteed (covers up to £2,500). For higher values, you can purchase extra insurance directly at the post office or online.

USPS in the US works similarly. Insuring a $5,000 package can cost around $2.25 per $100 of value. A $100 insurance is often included for free with certain services, like First‑Class Package Service. Knowing these price points helps you compare offers without guessing.

When you’re looking at same‑day couriers like Same Day Express Delivery, ask about their insurance tiers. Many offer basic coverage for a few pounds and let you add more if needed. Check if the insurer handles claims quickly – you’ll want a smooth process if something goes wrong.

Don’t forget to read the fine print. Some policies exclude weight‑related damage, temperature‑sensitive items, or items with existing scratches. Document your package with photos before you ship; those pictures become vital proof if you need to file a claim.

After the parcel is delivered, keep the tracking receipt and any proof of value. If a claim is required, most carriers let you start it online and will ask for a written description, photos, and proof of the item’s worth.

Finally, weigh the cost against the risk. If the likelihood of loss is low and the item’s value is modest, you might skip extra insurance. But for high‑value or irreplaceable items, the few extra pounds for coverage are a smart safeguard.

Bottom line: Delivery insurance is a cheap way to protect your shipments. Know your package’s value, compare carrier rates, and keep good documentation. With the right coverage, you’ll ship with confidence and avoid unexpected expenses.