USPS Insurance Explained – What You Need to Know

Sending a package with the United States Postal Service? Adding insurance can feel like a hassle, but it’s really just a safety net for when things go wrong. In this guide we’ll break down how USPS insurance works, how much it costs, what it covers, and when it makes sense to use it instead of other options.

How USPS Calculates Insurance Prices

USPS charges a flat fee for the first $100 of coverage, usually around $2.45 for most domestic services. After that, each additional $100 costs about $0.45. For example, if you insure a $350 package, you’d pay the $2.45 base fee plus two extra $0.45 increments – total $3.35. International rates are higher and vary by destination, but the same tiered structure applies.

Keep in mind that the price you see on the checkout screen may include a small handling surcharge, especially for Priority Mail Express. Always double‑check the final amount before you print the label.

What’s Covered and How to File a Claim

USPS insurance protects the declared value of your shipment against loss or damage while it’s in transit. It does not cover delays, customs issues, or problems caused by the sender’s packaging. To claim, you’ll need the tracking number, proof of the item’s value (receipts, invoices), and any photos showing damage.

File the claim online within 60 days of delivery (or the delivery date shown on the tracking page). USPS will review the documents and, if approved, issue a refund for the insured amount minus any deductible – which is usually zero for standard insurance.

If you’re shipping high‑value items like electronics or jewelry, consider adding extra insurance or using a carrier that offers higher liability limits. Some businesses bundle insurance with their own logistics contracts to simplify the process.

At StockOne Logistics we often advise clients to compare USPS insurance with third‑party options. Third‑party policies can sometimes offer lower premiums for large shipments or add coverage for things USPS doesn’t, like accidental damage during handling at a fulfillment center.

So, next time you’re about to ship a package, ask yourself: is the value high enough to warrant insurance? If the answer is yes, the USPS insurance calculator on the website makes it easy to add the right amount of protection. And if you need help navigating the options, our team is ready to walk you through the best choice for your business.