Configuring Additional Carrier Insurance for Your Products – Cahoot

Network Sellers can configure additional carrier insurance at the SKU level to automatically protect packages valued above the carrier's default coverage. Most major carriers include up to $100 of insurance coverage automatically on their standard services - you only need to configure additional insurance if your products are worth more than this default coverage or if you're using services with no default protection.

Good News: If your products are valued at $100 or less and you ship with UPS, FedEx, USPS Priority Mail, or USPS Ground Advantage, you already have insurance coverage included at no extra cost. You can file claims with carriers up to $100 without any configuration needed in Cahoot.

Important: Adding insurance beyond the included carrier coverage will increase your shipping label costs for each order. For more affordable additional coverage, consider Shipsurance, which can save you up to 85% compared to carrier insurance rates. Learn more.

Default Carrier Insurance Coverage

Before adding insurance to your SKUs, understand what coverage is already included with your carrier services:

Carrier Service	Default Coverage	Need to Configure?
UPS Ground/Air Services	$100	Only if product value exceeds $100
FedEx Ground/Express	$100	Only if product value exceeds $100
USPS Priority Mail	$100	Only if product value exceeds $100
USPS Ground Advantage	$100	Only if product value exceeds $100
USPS Priority Express	$100	Only if product value exceeds $100
FedEx/UPS Economy Services	$0	Yes - if you want any coverage

Key Point: Default carrier insurance is automatically included - you don't need to configure anything in Cahoot to receive this coverage. You only need to configure insurance at the SKU level when you want coverage that exceeds the carrier's default amount.

When to Add Additional Insurance to Your SKUs

Configure insurance at the SKU level when:

Product value exceeds $100: The default carrier coverage won't fully protect your shipment
Using services with no default coverage: Such as USPS First Class Mail or economy carrier services
High-value items: Products worth hundreds or thousands of dollars need explicit coverage configuration
Fragile or breakable products: Even if under $100, you may want guaranteed coverage for glass, electronics, or other delicate items

How to Add Carrier Insurance to Your SKUs

1Navigate to Products > Products in the top navigation menu.

2Search for the SKU you want to configure and click Edit Package Data.

3Click the Additional Options link to expand extra configuration fields.

4Locate the insurance field and enter your desired coverage amount:

Insurance: Carrier - This means your account is configured to use only carrier-provided insurance
Insurance: Carrier + Shipsurance - This means your account uses the included carrier insurance (typically $100) plus any additional coverage through Shipsurance

5Enter the total insurance amount you want for this SKU.

6Click Save to apply the insurance configuration to your SKU.

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Cost Consideration: Any insurance amount you configure at the SKU level is added ON TOP OF the carrier's included default coverage. For example, if you enter $200 insurance on a UPS shipment (which includes $100 default), you'll be charged for the full $200 of additional coverage, resulting in $300 total coverage ($100 included + $200 purchased). This can significantly increase your shipping expenses compared to Shipsurance alternatives.

How Insurance is Applied to Orders

Once you've configured insurance at the SKU level, Cahoot automatically calculates the total insurance needed for each order:

Single SKU orders: The insurance amount configured for that SKU is applied
Multi-SKU orders: Insurance amounts are summed across all SKUs in the order
Multiple quantities: Insurance is multiplied by the quantity ordered

How Insurance Amounts Work: The amount you enter in the insurance field at the SKU level is ADDED to the carrier's default coverage. The carrier's included coverage is always applied first, and any configured amount is additional purchased coverage on top of that. Note: To get $300 total coverage, you'd configure $200 in the insurance field since the carrier's $100 is automatically included.

Filing Insurance Claims

For claims using default carrier coverage ($100 or less)

If your package was damaged, lost, or stolen and you're using the carrier's included $100 coverage, you can file a claim directly with the carrier even if you didn't configure anything in Cahoot's Package Manager Data:

For Shipsurance claims

If you're using Shipsurance for additional coverage, visit the Shipsurance article for claim filing instructions.

Understanding Your Insurance Options

Network Sellers have two insurance options available:

Carrier Insurance

Most services include $100 coverage automatically at no charge
Additional coverage available but increases shipping label costs
Claims must be filed directly with the carrier
Coverage typically ends when package is marked "Delivered"
For USPS, default coverage requires a USPS Tracking® barcode (automatically included on commercial labels)
Best for products valued at $100 or less using standard carrier services

Shipsurance (Recommended for Additional Coverage)

Up to 85% cheaper than carrier insurance rates for coverage beyond $100
Covers packages even after "Delivered" status
Simpler claims process - no need to prove carrier negligence
Can be configured to work alongside carrier default coverage or replace it entirely
Best for products valued over $100 or when you want "all-risk" protection

To learn more about Shipsurance and how to enable it for your account, visit our Shipsurance Benefits article or contact Cahoot Support.