Shipsurance Cargo Insurance - Benefits Explained
Shipsurance provides affordable cargo insurance for your shipments at up to 85% cheaper than carrier insurance rates. Unlike carrier-provided declared value insurance, Shipsurance offers true "all-risk" coverage that protects your packages even after they're marked as delivered, with a simpler claims process that doesn't require proving carrier negligence.
Shipsurance vs Carrier Insurance Cost Comparison
See how much you can save with Shipsurance compared to purchasing additional carrier insurance:
| Carrier | Service | Carrier Rate | Shipsurance Rate (per $100) | Savings |
| USPS | Domestic | $2.95 | $0.75 | 75% |
| International | $1.30 | $0.99 | 24% | |
| FedEx | Domestic | $3.15 | $0.50 | 85% |
| International | $1.05 | $0.75 | 29% | |
| UPS | Domestic | $3.45 | $0.50 | 84% |
| International | $3.45 | $0.75 | 78% |
*Carrier rates shown are for additional insurance beyond the free coverage included with each service.
What is Shipsurance?
Shipsurance (an Assurant Company) is a leader in cargo insurance with a simple and fast claims process. Cargo insurance typically costs approximately $0.50 per $100 of coverage for domestic packages and $0.75 per $100 for international packages.
Key Differences: Cargo Insurance vs Declared Value
Carrier-provided insurance is "declared value" coverage, while Shipsurance provides true "cargo insurance." Here are the critical differences:
Proof of Negligence
- Carrier Declared Value: You must prove the carrier's negligence directly caused the loss or damage
- Shipsurance Cargo Insurance: Claims are paid regardless of whether carrier negligence can be proven
Coverage After Delivery
- Carrier Declared Value: Coverage ends once the package is marked "Delivered"
- Shipsurance Cargo Insurance: Continues to cover packages even after "Delivered" status
Why Choose Shipsurance Over "Free" Carrier Insurance?
While carriers include up to $100 of free coverage on many services, that "free" coverage comes with significant limitations when you need to file a claim. Here are common issues merchants face with carrier insurance claims:
- Automatic denials: Claims for packages scanned as "Delivered" are often automatically denied
- Customer cooperation required: Recipients must take damaged items to a post office, and many won't participate
- Difficult to reach support: Automated systems with rare return phone calls make claim follow-up frustrating
- Extremely slow payouts: Claims can take up to 6 months to receive payment, even for amounts under $100
While carrier coverage costs nothing upfront, the time spent following up on denied or delayed claims becomes expensive. Shipsurance's streamlined process saves both time and money.
How Shipsurance Works with Carrier Coverage
Cahoot supports three insurance configuration options at the account level:
Option 1: Carrier Insurance Only (Default)
Only purchase insurance through shipping carriers. This is how all accounts are configured by default.
Option 2: Carrier + Shipsurance (Recommended)
Use the carrier's included default coverage (typically $100), then Shipsurance covers any additional insurance beyond that amount. For example, if you insure a FedEx package for $300, the first $100 is covered by FedEx, and Shipsurance covers the remaining $200.
Option 3: Shipsurance Only
All insurance goes through Shipsurance, replacing carrier insurance entirely. With this option, the full amount is covered by Shipsurance.
Verifying Your Insurance Configuration
Once Shipsurance is enabled on your account, you can verify it's active by checking your SKU Package Manager Data or the Create Label screen:
With Carrier Insurance Only
- Insurance field shows: "Insurance: Carrier"
- Only carrier-provided insurance is used
With Shipsurance Enabled
- Insurance field shows: "Insurance: Carrier + Shipsurance"
- Carrier's default coverage is used first, Shipsurance covers additional amounts
Configuring Insurance at the SKU Level
Insurance is configured as part of your SKU's Package Manager Data. The amount you enter will be automatically applied to all orders containing that SKU.
To configure insurance for a SKU
1Go to Products > Products
2Find your SKU and click Edit Package Data
3Click Additional Options to expand the insurance field
4Enter the insurance amount you want added to orders containing this SKU
5Click Save
For detailed instructions on configuring insurance at the SKU level, see: How to Add Carrier Insurance at the SKU Level
How to File a Shipsurance Claim
Step 1: File Carrier Claim First (If Applicable)
If you have insurance from both the carrier AND Shipsurance, you must file the carrier claim first
Step 2: Submit Shipsurance Claim
Once you've initiated the carrier claim (if applicable), file your Shipsurance claim:
1Go to the Order Details page for the damaged/lost shipment
2Click the File Shipsurance Claim link
3The claim form will pre-populate with order details. Fill in the required fields:
- Claim reason (lost, damaged, or missing contents)
- Description of the issue
- Carrier claim number (from Step 1)
- Any supporting documentation or photos
4Submit the claim form
You'll receive confirmation from Shipsurance, and all status updates will come directly from Shipsurance.
Viewing Insurance Coverage on Orders
You can view insurance details for any order in multiple locations:
Order Details Page
Order Status Page
Shipsurance Terms and Conditions
You can access Shipsurance Terms and Conditions from:
- The popup link in SKU Package Manager Data
- The Create Label page
- Direct link: https://www.shipsurance.com/cahoot/terms
Get Started with Shipsurance
Ready to save up to 85% on insurance costs and simplify your claims process? Contact Cahoot Support to enable Shipsurance on your account.