Shipsurance Reviews 272

My customer received a damaged espresso machine valued at over $2,500. Unfortunately, they no longer want to keep it because Shipsurance has made the claims process incredibly difficult.
To even consider covering the damage, Shipsurance requires two repair estimates.

The machine weighs over 100 lbs, and each estimate involves a minimum of 3 hours billed at $100 per hour. That means I would need to spend at least $600 out of pocket just to maybe qualify for coverage, even though the actual repair might cost less than the estimates.
Worse, Shipsurance clearly states they will not reimburse the cost of obtaining the estimates, only the repair itself if approved. This policy is completely unreasonable and puts all the financial burden on the claimant, even when the damage is obvious.
This process feels like a deliberate way to avoid paying valid claims.

I strongly advise other businesses to avoid Shipsurance. They waste your time and money while doing everything possible to deny support.
Scammers.

Do not use Shipsurance.

After weeks of providing every piece of requested documentation -- including photos, receipts, and a valid commercial invoice -- Shipsurance closed my claim and refused to reimburse me.

They engaged in manipulative and deceptive practices, repeatedly requesting irrelevant documentation not outlined in their terms -- including artist confirmation and product reproduction details. These shifting demands appeared to be deliberate tactics to delay the process and ultimately avoid payment.

Their reason for denial? That the items "did not remain with the recipient," citing a vague and misleading interpretation of their policy. However, their own terms clearly state:

"All packaging material and damaged goods must be kept in the original form as received."
This refers to the condition of the package -- not the physical possession of it. In my case, both the item and packaging were fully preserved, photographed, and documented in their original state. The only reason the item was no longer with the recipient was because the customer voluntarily returned it to my store -- a decision entirely outside of my control.

This was a valid, insured claim. Their refusal to honor it is not only unprofessional, it's unethical.

I strongly caution anyone considering Shipsurance -- their business practices reflect a clear lack of integrity, accountability, and respect for their customers.

The process with Shipsurance has always been quick and easy. I recently had to file a claim, and they handled everything efficiently and got my payment expedited without any hassle. It was a smooth experience from start to finish, and I really appreciate how straightforward the whole process was. Highly recommend their coverage—it definitely gives peace of mind when shipping!

I bought insurance on a package that the insurer now says can't be insured. Why did they let me buy the insurance if they're not going to insure it in the end? Sounds like a scam to me. Don't buy insurance from this company. They don't come through in the end.

Their policies makes no sense. The package I sent was Stolen. However, they requested a picture of the box with the label on the box. How is that even POSSIBLE.

shipsurance helped with my claim within a few days and the lady there called norma serrano was quite professional

Shipsurance is the best! They never failed me. I really appreciate it!

I trust Shipinsurance, they always delivering a JUSTICE, using them with my each shipment knowing my packages are SAFE with them

Very legitimate firm, acts quickly, resolves quickly, I am a very happy customer. I own a Shopify site and we do hundreds of orders a month, and packages get lost all the time, and Shipsurance really helps me sleep at night!

In just a few months of using Shipsurance, we've saved thousands of dollars that would have been lost due to damaged or lost packages. Knowing that we can recover the amount if a customer confirms a loss or damage gives us confidence to send replacements quickly, greatly enhancing the customer experience. Having Shipsurance integrated into our Shopify plan has proven to be extremely valuable – the claims we receive basically cover the cost of our Shopify plan and more. The only downside is that verifying claims with customers can be a bit manual and time-intensive. If there were an option to automate this process, Shipsurance would be even more effective.

Shipsurance denied my small business a claim (the first claim in nearly 4 years of business). I am diligent about insuring boxes that are over a certain amount because as a soap manufacturer, it's not a product that is easily replaceable, due to a long curing process. We landed a custom manufacturing account with a small business in California, and to my shock, one of the two shipments was damaged entirely. The soaps were unsellable, the box was even wet on the inside. I've shipped to all 50 states and I've never seen a box arrive with contents so badly handled.

I remembered that thankfully the box was insured and thanked the small business partner for taking so many pictures. I, as the shipper, filed the claim. Then, Shipsurance started asking for MORE pictures. We submitted over 10 pictures of the damage. The process dragged on, when they asked, again, for even more pictures.

I've never felt more disrespected and taken advantage of as a small business owner until I came across Shipsurance. Stay far away from insuring anything of worth with this company, they won't believe you even with ample proof, and will deny your claim entirely.
I am convinced this company is a scam, and why PirateShip has now gone a different direction with shipment insurance. I wonder how many small businesses suffered because of Shipsurance, I know for sure, my small business is now out $500.

Own a furniture company and we ship a decent amount of items. First time I've actually had a damaged item and had to file a claim, only for it to be declined. These guys are just like any other insurance company!! They will decline you unless you go above and beyond to document every single little thing with picture proof, which let's face it is impossible, especially for the recieving end to do.

My claim was denied because the buyer could not take pictures of the packaging. Buyer did not notice the damage until later in the day once the packaging has been discarded. I really don't understand what these guys expect? They seriously expect buyers to take images of the packaging material? Before removing the item!! So they can see how it's packed.

We happened to actually take an image of the actual item in the packaging before shipping it. We dont normally do it but sometimes we will for training purposes. Anyway, we provided these images but got denied because they didn't come from the buyer, funny right?

Anyways these guys are a joke and we will not be wasting our money on insurance anymore with them. I advise others to follow Suite.

I shipped my package via UPS through Pirateship, with insurance provided by Shipsurance (purchased through Pirateship as well).

I have tracking information where UPS has clearly stated that they damaged the box and lost all of the contents. With that said, I have spent the past month now trying to get reimbursed for my damaged package.

Shipsurance is being a total hassle over this, wanting proof that my customer paid for the product, and even after providing this information, now wanting proof that I actually deposited my customer's check. This is absolute absurd.

The facts are simple:
1) I paid to have the package insured
2) It does not matter whether I was shipping to a paying customer, or a non-paying person... I paid for this package to be insured.
3) It does not matter whether my customer paid, when my customer paid, when I deposited my customer's payment... I paid for this package to be insured.

The resolution is simple:
1) I shipped a package, and paid to have it insured
2) UPS admitted they damaged the package
3) I expect to be reimbursed for the cost of the package without being harassed about it

Simply put, Shipsurance wants to collect money for supposedly insurance shipments but does not want to pay out when there is a claim.

EDIT: In response to their reply... looking for my customer's payment, or bank records showing that I deposited it, does not verify the value of the shipment. What DOES show the value of the shipment, however, is 1) the amount of money I insured the package for 2) the invoice that I sent my customer (which I sent to you a month ago). Additionally, I sent a copy of the check my customer wrote, but obviously, all of this isn't good enough.

EDIT (11/11/24):
Claim was paid, although every time I have had to go through this process, it is quite a hassle.

Horrible. They ask for documents on clear damage.
Box is smashed contents destroyed.
Do not use these people go with UPS - much better service and attention.
#shipsurance does not want to pay so they continually think up reasons to ask for another document. You provide then they ask for another document. they are hoping to tire you out so they do not have to pay.
It is time consuming and irritating.
I will no longer use Stamps.com because of this horrible insurance company.

We've repeatedly uploaded the documents requested and they continue to say they have not been received. Some claims we've uploaded the documents 2-3 times and they still claim they have not been uploaded. They have yet to respond with an answer after sending several emails asking what the problem is on their end. Zero integrity and terrible service.

I received a warning from Shipsurance stating that my claims ratio is above expected level. Not sure where it came from. My total claim with this insurance company is one after dozens of buys. If it cannot handle the claims, it shall not be in this business. Also, the oddest response from a broken set claim is that it would only pay one piece of the whole set value. I never had a bad experience close to it when I work with USPS, Fedex and UPS damaged item claims. Stay away from this company.

I want to share my frustrating experience with Shipsurance. Despite UPS declaring packages as lost or damaged, Shipsurance requires a signed affidavit from the recipient before processing any claim. This not only delays the process but is often impossible to obtain, leading to denied claims. Vendors are forced to reimburse customers within a reasonable timeframe, but Shipsurance’s 20-day wait period for filing claims is way out of line with the requirements of UPS or USPS, causing significant financial strain. Additionally, their retrospective audits and demand for repayment for claims already settled if the package is later delivered are both unethical and unfair, placing undue financial burden on vendors.

Furthermore, Shipsurance requires an enormous amount of back-and-forth documentation and photographs, which seems designed to consume hours of a vendor's time, frustrating them and making the claims process even more cumbersome. Vendors who know that time is money find this approach particularly burdensome.

For example, I recently received a notice from Shipsurance requesting reimbursement for a package that was eventually delivered after the claim was paid. Despite having no control over the delivery, I am now required to remit payment, which adds to the already significant financial strain.

I strongly advise potential users to consider these policies before choosing Shipsurance for their shipping insurance needs. Their practices delay resolution, incur additional costs, and make it extremely difficult to get rightful compensation.

The Shipsurance terms of service include the following relevant points:

Claim Filing: Claims for loss must wait 20 days for domestic shipments (40 days for international) before filing.

Affidavit Requirement: A claim statement or affidavit signed by the recipient is required.

Retroactive Billing: If a package is delivered after a claim is paid, the vendor must reimburse Shipsurance upon their demand.

A $5000 guitar got broke in half by UPS! They refused to pay for it, they would only pay $300 to get it "repaired" !! I told them I paid for $5,000 in coverage, NOT $300.. They don't care! Greasy company and the women who work there are vile and uncaring!

Horrible. Don't expect to be pai if you have a UPS damage claim. F-rating.

After using PirateShip and Shipsurance for about a year, Shipsurance has decided to DROP our company for having the nerve to file a claim for a package that arrived damaged. They SEEMED like a better option in comparison with lower rates. Bear in mind, we've only had ONE prior claim, making this the second. (which I'm not expecting)
I guess this company only works if you are lucky enough to never have missing or damaged packages. It is beyond pointless to buy insurance when the insurer will just drop you for using the service.
We would recommend anyone not to pay for this sub-par service.
EDIT: After talking to Shipsurance, they just reiterated that they will no longer support us. Their response is a joke.