Paul Sanchez
Shipping insurance is a service that most carriers offer to protect shippers against lost, stolen, or damaged packages. FedEx offers insurance to handle these types of situations, but it is not included in the shipping cost. The company offers optional insurance coverage that can be purchased, with basic coverage of $100 included for each package. Customers can also choose to purchase additional liability coverage by declaring the value of a package. The declared value of a package represents FedEx's maximum liability in connection with the shipment, including loss, damage, delay, or misdelivery.
| Characteristics | Values |
|---|---|
| Insurance provider | FedEx |
| Insurance type | Shipping insurance |
| Insurance coverage | Optional, purchased insurance coverage |
| Basic coverage | $100 |
| Additional coverage | Available for purchase, with maximum declared values for certain items |
| Claim requirements | Written claim, inspection, and documentation |
| Direct Signature Required fees | Applicable for packages with a declared value of less than $500 |
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What You'll Learn
FedEx insurance coverage options
FedEx offers insurance to cover the cost of packages that are lost, stolen, or damaged during shipping. The first $100 of insurance is free, but additional coverage can be purchased for items valued over $100. The cost of insurance varies depending on the type of service selected and the items being shipped. For example, FedEx SameDay & SameDay City has a maximum declared value of $2,000, and the additional cost for declared value is $3 for shipments up to $300. For declared values over $300, a charge of $1.25 per $100 is applied.
FedEx also offers a Declared Value Advantage program, which allows shippers to increase the limit of liability for their packages, with or without purchasing third-party insurance. The declared value of a package represents FedEx's maximum liability in connection with its shipment, including loss, damage, delay, or misdelivery. It is important to note that declaring a value is not the same as purchasing insurance, and shippers may still choose to purchase insurance from an agent or broker to get door-to-door protection, coverage for losses outside of FedEx's control, expedited replacement goods, and reimbursed shipping costs.
When filing a claim for a lost, stolen, or damaged package, it is important to follow the guidelines of the shipping carrier. For FedEx, the shipper or receiver can file a claim for lost or damaged packages within 60 days of the package's ship date. FedEx will notify the shipper if an inspection is required and will provide updates on the claim status.
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Declared value and limits of liability
FedEx provides optional insurance coverage that customers can purchase. The declared value of a package represents FedEx's maximum liability in connection with the shipment of that package, including any loss, damage, delay, or misdelivery relating to that shipment. The shipper is responsible for proving any actual damages, and any risk of loss in excess of the declared value is assumed by the shipper.
The declared value of a package is independent of any insurance arrangement and should reflect the total amount it would cost to replace or repair the items in the shipment. There are maximum declared values that apply to certain items, such as artwork, jewelry, and antiques, as well as specific FedEx services. Declaring a value does not guarantee reimbursement for a lost or damaged shipment or receipt of the exact amount declared. A claim must first be filed in writing.
FedEx includes basic $100 coverage for each package they accept for delivery. Customers can choose to pay extra for additional liability coverage by declaring the value of a package. The additional declared value coverage charge for shipments valued at $100.01-$300 is $3.90. For shipments valued over $300, the additional charge is $1.30 per $100 of declared value.
Direct Signature Required fees are applied to packages with a declared value of less than $500. Packages with a declared value of $500 or more are not charged these fees. If shipping multiple international expedited service packages together to the U.S. or Canada, the Direct Signature Required option is applied to the entire shipment if at least one package has a declared value of $500 or more, or if the average declared value of the packages is $500 or more.
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Filing a claim
Shipping insurance is a service that most carriers, including FedEx, offer to protect shippers against lost, stolen, or damaged packages. If an insured package does not reach its destination, or if it is damaged when it’s delivered, the shipper can file an insurance claim with the carrier.
FedEx offers shipping insurance to handle these types of situations. The declared value of a package represents FedEx's maximum liability in connection with the shipment of that package, including any loss, damage, delay, or misdelivery relating to that shipment. As the shipper, it’s your responsibility to prove any actual damages.
FedEx also allows you to increase the limit of liability for your package, with or without purchasing third-party insurance. The declared value of a package is independent of your insurance arrangement. The amount you declare should reflect the total amount it would cost to replace or repair the items in your shipment.
FedEx Claims Online allows you to log in, create and submit a claim. You can also submit a claim without logging in by using your tracking number, although your information won't be auto-populated. You can file a single claim or up to 200 claims.
To file a claim, you will need your tracking or PRO number and any necessary supporting documents. These include photos of a damaged package, the serial number of lost merchandise, or a copy of the receipt. FedEx will let you know if your claim requires inspection, so keep the damaged goods and their packaging until your claim is fully resolved.
For LTL freight claims, send supporting documents to [email protected]. FedEx recommends using specific web browsers for an optimal experience when uploading documents.
If your claim is approved, FedEx will send your payment via check or Electronic Funds Transfer (EFT). The payment method is based on what you select when filing the claim. EFT is faster and more convenient.
You can file a claim for damaged or missing contents no later than 60 calendar days from the shipment date for US packages and 21 calendar days from the shipment date for international packages. Claims for undelivered or lost shipments must be filed within 9 months of the shipment date.
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Third-party insurance
FedEx offers optional insurance coverage that can be purchased. However, it has specific exclusions and limitations. For instance, items like cash, precious stones, and certain electronic devices may have limited or no coverage. Additionally, FedEx declared value coverage is not shipping insurance and does not guarantee reimbursement for lost or damaged shipments.
Third-party shipping insurance is an alternative option to FedEx's insurance. Third-party insurance can cover door-to-door losses, not just damage while in transit. It can also provide recompense if you can't prove fault or negligence by FedEx. For instance, Secursus is a third-party insurance company that covers FedEx parcels during transit at a lower rate than FedEx insurance. It covers all risky items excluded or limited by FedEx insurance. Another example is Shipsurance, an independent shipping insurance company.
Some third-party logistics (3PL) providers offer insurance, but they may require the seller to handle claims processing on their own. It is important to review the insurance policy carefully, as some common items that may be exempt from coverage include extremely valuable products, HAZMAT or dangerous items, perishables, and pharmaceuticals.
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Shipping costs
FedEx offers insurance to cover the cost of lost, stolen, or damaged packages. The first $100 of insurance is provided for free, but additional coverage can be purchased for potential losses exceeding this amount. The cost of insurance depends on the value of the package, with higher-priced items requiring a higher insurance fee. For example, as of 2023, the additional declared value coverage charge for shipments valued at $100.01 - $300 is $3.90.
FedEx's declared value coverage has specific exclusions and limitations. Certain items, such as cash, precious stones, and specific electronic devices, may have limited or no coverage. Additionally, coverage may be denied if items are not properly packaged or fall under restricted categories. For instance, fragile items must be adequately packed to withstand regular handling.
FedEx also offers a FedEx® Declared Value Advantage contract for customers who regularly ship high-value specialty items, such as jewellery, gemstones, pearls, and precious metals. This contract allows customers to declare a value of up to $100,000 per domestic shipment and up to $25,000 for select international destinations.
The cost of shipping insurance with FedEx can vary, and it is recommended to review the total shipping costs, including insurance, before finalising a shipment. It is worth noting that shipping insurance is not the only option for protecting packages. Third-party insurance can provide door-to-door coverage, recompense if fault or negligence cannot be proven, and cover the total value of the item plus shipping costs.
Overall, FedEx shipping insurance can provide peace of mind for senders, but it is important to understand the limitations and exclusions to ensure adequate coverage for valuable items.
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Frequently asked questions
FedEx provides basic coverage of $100 for each package they deliver. You can also purchase additional insurance coverage from FedEx or a third-party insurance provider.
The additional declared value coverage charge for shipments valued at $100.01 - $300 is $3.90. For shipments valued over $300, the additional charge is $1.30 per $100 of declared value.
FedEx shipping insurance covers loss, theft, or damage to packages.
To file a FedEx shipping insurance claim, you must first determine if your claim requires inspection and keep the damaged goods and their packaging. Then, gather the necessary documentation, which may include the original mailing receipt and details about the shipment. Finally, submit your claim online or by mail.
Yes, there are specific exclusions and limitations to FedEx shipping insurance. For example, items like cash, precious stones, and certain electronic devices may have limited or no coverage. Additionally, coverage may be denied if items are not properly packed or if they fall under restricted categories as detailed in the FedEx Service Guide.
