What Does UPS Insurance Cover?


UPS insurance covers the loss or damage of packages during transit. It provides additional protection to customers beyond standard liability coverage offered by UPS. Depending on the level of insurance purchased, it can cover up to the declared value of the package and may also include coverage for shipping costs and other fees. In this article, we will discuss in detail what is covered under UPS insurance and how it works.

Common Package Loss or Damage Covered by UPS Insurance

Have you ever sent a package through UPS and wondered what kind of protection their insurance offers? It’s important to understand the coverage that comes with your shipment, especially if it contains valuable items. In this article, we’ll be diving into what common package loss or damage is covered by UPS Insurance.

Firstly, let’s start with lost packages. We’ve all experienced the frustration of waiting for a package only to realize it hasn’t arrived on time or at all. With UPS Insurance, you can rest easy knowing that they will reimburse you for any lost packages up to the declared value of your shipment. However, it’s important to note that there are certain restrictions and exclusions when filing claims for lost packages.

Next up is damaged shipments. Even though UPS takes great care in handling our packages during transit, accidents can still happen along the way. Whether it be due to rough handling or environmental factors such as extreme weather conditions – damages incurred during shipping are not uncommon occurrences. If your item arrives damaged upon delivery, don’t worry! The good news is that most types of physical damage caused during transit should be eligible for insurance coverage under UPS’ policy.

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Some examples of damage include broken glassware or electronics with cracked screens due to impact sustained in transport- these types of incidents would typically fall under “physical loss/damage” which covers breakages resulting from dropping/impact etc…

Another type of claim covered by ups insurance is theft- whether parcel stolen en route before reaching its destination (theft), missed deliveries because nobody was home/or available at pickup location – these too may qualify subject certain conditions being met (e.g providing evidence such as proof-of-delivery).

It’s worth noting however- while basic liability coverage applies automatically each time an item passes hands through Ups network – free ground service provided limited financial support(only $100)- whereas opting-in high-value declaration upon booking shipment provides reassurance against losses greater than the minimum liability of $100.

To file a claim with UPS Insurance, you’ll need to provide documentation such as proof of insurance and evidence of the damage or loss. This process can be done online through their website or by contacting their customer service team for assistance.

In conclusion, it’s important to understand what kind of protection is available when shipping items via UPS. With coverage for lost packages, physical damage during transit/transportation and even theft- customers can feel confident in knowing that their shipments are protected against common risks encountered while in-transit. While having basic liability coverage provides some level assurance -protection limits may not suffice especially when dealing valuable goods whereby opting-in higher-value declaration is recommended before any shipment booking is made . Overall ups insurance policy remains useful tool which businesses & Individuals alike should take advantage due to its various benefits provided – ultimately providing peace-of-mind throughout the delivery process!

Understanding the Limits of Liability and Additional Coverage Options for UPS Packages

When shipping packages with UPS, it’s important to understand what insurance coverage you have and whether additional options are available. While UPS automatically provides some level of liability coverage for lost or damaged shipments, there are limitations to this protection.

UPS Liability Coverage

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Firstly, let’s talk about what is covered by the default liability coverage provided by UPS. This will vary depending on the type of service you use and the destination of your shipment but generally covers up to $100 in value per package within the US.

For international shipments, a declared value option may be available which allows customers to specify a higher value than $100 for their shipment. However, this comes at an additional cost and must be purchased before the package is shipped.

It’s important to note that even if your shipment has enough liability coverage through these options; there are still exclusions where UPS isn’t liable for damage or loss such as natural disasters or defects in packaging done by customer itself.

Additional Coverage Options

If you’re shipping items worth more than $100 (or another specified amount), it may be wise to consider purchasing additional insurance coverage from UPS. The company offers two different types of supplemental coverage: declared value and excess valuation.

Declared Value: As mentioned earlier, Declared Value lets shippers declare a higher value limit than standard liability so that they can receive compensation when their high-value items get lost during transit or become damaged beyond repair while being transported via any mode—ground delivery included.

Excess Valuation: Excess valuation adds extra protection over top-rated limits against damages resulting from accidents such as drops due diligence mistakes made during loading/unloading warehouses etc., however again keep in mind that both these options come at extra costs based on how much added protection one needs.

Filing Claims

In case something goes wrong with a package regardless of having sufficient insurance coverage claims can be filed online 24/7 via ups.com portal using tracking number & package details that include the description of the item, photos as evidence if damage is visible upon arrival. UPS has 120 days to investigate and respond to each claim.

In Conclusion

UPS provides liability coverage for its customers’ packages up to a certain amount but there are limitations depending on factors such as destination and service type chosen while shipping. Additional insurance options like declared value or excess valuation provide extra protection against loss/damage at an added cost based on how much of it one wants though filing claims in case something goes wrong remains unchanged regardless of opted coverage limits & will require proper documentation for investigation by UPS team so make sure you keep receipts or other proof handy!

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Question 1: What does UPS insurance cover?

Answer: UPS insurance covers loss or damage to eligible items during transit with their shipping services.

Question 2: Are there any exclusions to what is covered by UPS insurance?

Answer: Yes, certain items such as cash, jewelry, and perishable goods are not eligible for coverage under UPS insurance. There may also be limitations on the amount of coverage available for certain types of shipments.


UPS insurance covers loss or damage to packages during transit up to a certain value, depending on the level of coverage purchased. It also covers any additional fees incurred due to shipping errors made by UPS. However, there are exclusions and limitations in the coverage, such as items that are prohibited from shipping or those with inadequate packaging. It is important for customers to understand the details and requirements of UPS insurance before purchasing it for their shipments.