Are UPS packages insured? (all you must know)
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Shipping companies like UPS can ship everything from personal, sensual items to more luxurious and expensive items.
Since you can put some very expensive stuff in a UPS box, does UPS provide insurance – and if so, what do you need to know about how to use it? If you want to know, keep reading!
Are UPS packages insured in 2022?
All UPS packages are automatically insured up to $100 in 2022. If you want to insure your package over $100, you must use UPS’s declared value program, which insures your package for up to $50,000. All packages, including UPS Ground, are automatically insured for $100 and will be reimbursed if lost or damaged while in UPS custody.
If you’re using UPS to ship packages containing valuables, or just wondering if it’s a good idea to do so, be sure to check out the rest of the article to learn more!
How much does it cost to insure a UPS package?
All packages shipped by UPS are automatically insured for $100.
So no matter what item you’re shipping, or whether your item is insured, you’re eligible for up to $100 in reimbursement if an item is lost or damaged while in UPS custody.
The cost of this insurance is automatically included in the shipping cost of your package, so if your package is worth $100 or less, you don’t need to purchase additional insurance.
However, if your package is worth $100 or more, you need to use UPS’s declared value program to ensure that UPS understands and accepts the financial responsibility for processing your package.
Declaring a value over $100 isn’t technically insurance, but it does help create a paper trail that can help you get your money back if something goes wrong with your package.
UPS does charge a fee for packages of declared value, which depends on how much you say the package is worth, which is mentioned in this article.
For every package valued between $0 and $100, UPS automatically insures it at no additional cost.
For packages valued at $100.01 to $300, the premium is $3.45 per package.
For any package valued over $300, UPS will charge an additional fee of $1.15 for each additional $100 in declared value.
For international shipments of unusually high value or international shipments over $50,000, UPS multiplies the declared value of the package by $0.009.
For example, let’s say you want to ship a $1,050 package using UPS’s declared value system.
To calculate your declared value fee, you need to multiply $1.15 by 11, which adds $12.65 to your declared value fee in addition to shipping.
However, UPS’s declared value system has some limitations that you need to consider before shipping.
In some cases, these limits revolve around the maximum declared value, as follows:
- $50,000 for packages shipped with a UPS account number or from a UPS store location
- $5,000 for packages shipped via UPS Internet Shipping using a payment card as payment method
- $1,000 for packages returned via UPS Print Return Label, UPS Print and Mail Return Label, Electronic Return Label, or 1 UPS Pickup Attempt, Return Services, and UPS Returns on Web
- $1,000 for packages shipped through third-party retailers
- $500 for a package shipped in a UPS drop box
- $500 for international shipments including jewelry
- Shipper cannot declare value for UPS Prepaid Letters
- $999 for packages shipped with Shipper Release
Again, it’s important to remember that while the declared value is important to secure UPS share and understand the financial responsibility of the package, the value is not necessarily the same as insurance.
UPS uses the declared value to help determine its maximum liability in the event of a lost or damaged package, but does not guarantee that they will pay every penny of the item’s declared value as reimbursement in the event of loss or damage.
Events, issues and items not covered by the UPS Claimed Value program include:
- Items of unusual value
- prepaid letter
- Insects or pests, spoilage, atmospheric humidity, extreme temperatures, ordinary wear or tear
- Improper packaging
- perishable goods
- human remains
- Checks: UPS will not pay the face value of checks
- Fluorescent tubes or bulbs
- data stored on any media
- Force majeure, natural disaster, risk of war, acts of terrorism, nuclear sabotage, acts of public authorities, riots, strikes, civil unrest, disruption of air or ground transportation networks, or severe weather conditions
- Any unscanned package or shipment
To learn more about UPS’s declared value program, you can view this page on the company’s website.
Does UPS Ground include insurance?
All UPS shipping services, including UPS Ground, include insurance.
That means you can get up to $100 in compensation for damaged or lost packages, even if you choose to ship with UPS’s cheapest service.
As with any other shipping service, for packages that require more than $100 insurance coverage, you should consider using UPS’s declared value program.
Will UPS pay for insurance on lost packages?
If your package is lost while in UPS custody, UPS will usually pay the insurance amount for the package.
UPS also pays insurance claims for damaged items.
However, it’s important to remember that UPS does not pay more than $100 per package unless your declared value states otherwise.
The first thing you should do to get coverage from UPS for lost or damaged packages is to file a claim.
You may file a claim by visiting this page of the UPS website and creating an account using various information such as your name and address.
When filing a claim, be sure to provide as much package information as possible.
This information includes the tracking number, weight, contact information for the intended recipient of the package, and any other supporting documentation.
UPS typically takes 8 to 15 business days to process a claim before approving or denying it.
This gives UPS enough time to try to track the package and verify all the information you provide.
Once the claim is approved and payment documentation is provided, processing may take 3 to 5 days to receive payment.
If you want to learn more about the claims process and what you can expect from UPS in terms of communications, payments, and required documentation, you can check out this article.
What insurance does UPS not provide?
Like many other companies, UPS does place limits on what items can be insured against theft and how insured certain items can be.
There are two categories of these items:
UPS insurance does not cover uninsurable items to any extent, and items with limited liability have very limited coverage.
UPS non-insurable items include:
- cash
- coin
- any type of currency
- precious stone
Items subject to limitations of liability through UPS are as follows:
- an examination
- UPS will not pay the face value of the check, only the cost of stopping and reissuing the check
- Phone cards, gift cards, tickets, other printed matter with a certain redemption value
- As with checks, UPS is not responsible for the face value of any such items, only the cost of replacing the physical print
- media
- UPS will only cover the cost of replacing the physical media on which the content is recorded, not the value of the content itself
- Pairs or parts
- If a pair/kit is damaged, UPS’s liability is limited to the value of the damaged pair or kit portion, not the value of the entire set
- If any part of an item is damaged, the item is made up of multiple parts at the time of sale/use, UPS is only responsible for the damaged part, not the value of the entire item
To learn more, you can also read our posts on whether USPS accepts UPS packages, whether you can reschedule UPS packages, and UPS complaints.
in conclusion
There is no cost to insure UPS packages, as each UPS package is automatically insured for up to $100.
However, there is a fee for using UPS’s declared value program, which is an alternative to insuring packages over $100.
