Delivery Insurance: What You Need to Know for Safe Shipments

Shipping something valuable feels risky, right? One misplaced box or a fender‑bender can cost you more than just a few dollars. That’s where delivery insurance steps in – it’s the safety net that keeps your parcels, your vehicle, and your wallet out of trouble.

Whether you’re a small business sending a $1,000 gadget via USPS or a gig driver for DoorDash racing through traffic, the right insurance can save you headaches. Below, we break down the main types of coverage, point out common pitfalls, and give you a quick checklist to pick the plan that actually fits your needs.

Common Types of Delivery Insurance

USPS Package Insurance. The U.S. Postal Service automatically includes up to $100 of coverage on most shipments. If you’re shipping something worth less than that, you’re already protected. For anything above $100, you can add extra insurance – the cost scales with the declared value, typically a few cents per $100.

DoorDash Driver Insurance. Driving for DoorDash means your personal auto policy may not cover a work‑related accident. Many drivers see their premiums jump because insurers label gig work as high‑risk. The good news: specialized gig policies now bundle liability, collision, and cargo coverage at a predictable rate. Compare a few quotes and look for a plan that covers both the vehicle and the parcels you’re delivering.

General Cargo & Liability Insurance. Larger businesses often need a broader policy that covers multiple shipments, multiple carriers, and third‑party liability. This kind of coverage is especially useful if you ship internationally or handle high‑value items regularly.

How to Choose the Right Coverage

Start with the value of what you’re sending. If the item’s worth $200, the free $100 USPS coverage isn’t enough – add $100 extra insurance and you’re set. For recurring shipments, calculate the average loss rate in your industry and see if a bulk policy offers a discount.

Next, think about the carrier. USPS is cheap but slower; DoorDash is fast but the driver’s policy might leave gaps. If you use several carriers, look for a “multi‑carrier” endorsement that works across services.

Don’t forget exclusions. USPS, for instance, won’t cover perishable goods, hazardous materials, or items already damaged before shipping. Knowing these limits stops you from filing denied claims later.

Finally, check the claims process. A good insurer makes filing a claim straightforward: a simple online form, a clear timeline, and responsive support. Read reviews from other drivers or small business owners – their experiences tell you more than any marketing brochure.

Quick checklist:

• Identify the item’s declared value.
• Match coverage level to carrier (USPS, DoorDash, etc.).
• Review exclusions and make sure your product isn’t on the list.
• Compare cost per $100 of coverage across providers.
• Test the claim filing process with a small shipment.

Bottom line: delivery insurance isn’t a one‑size‑fits‑all product. It’s a tool you customize to your shipment size, carrier choice, and risk tolerance. Take a few minutes to run the numbers, read the fine print, and you’ll ship with confidence, knowing you’ve got a safety net when the unexpected happens.