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5 Questions to Ask Before Purchasing Cargo Insurance

Cargo insurance is an often-overlooked factor in e-commerce shipping, but when the moment comes when you need to use it, you’ll be glad you purchased the right coverage. Read on to see our tips for understanding what’s covered, what to expect, and where to purchase it. 

When making shipping decisions for a small to mid-size business, it goes without saying that every. dollar. counts. Whether you’re an established antique dealer or a custom woodworker on Etsy, protecting yourself against unexpected shipping expense losses, like accidental damage or theft, can make all the difference in your total net profits.

There are obvious steps a business can take to prevent loss and damage from occurring in the first place, from properly packaging an item to choosing a first-to-final mile provider, but this is logistics, an imperfect science with occasional imperfect results. If an item is damaged or lost in transport, not only will your business have to cover the cost of replacement, but there’s also the potential for reverse shipping costs. Instead of covering these unexpected losses out of pocket, insuring your items is the best way to guarantee you’re covered for all possible scenarios.

That’s where uShip Cargo Insurance comes in.

Depending on the value of the item you’re shipping, additional cargo insurance offers affordable peace of mind. Here are five key questions to consider before purchasing cargo insurance from uShip.


Technically, yes, your carrier’s insurance should cover a percentage of the damage, but coverage can vary greatly depending on your driver’s insurance of choice.

More importantly, uShip does not currently have a way to verify that transporters using our platform carry insurance. In this case, if damage were to occur, you would be fully responsible for the cost. For this reason, we provide our shippers with all-risk, full value cargo insurance that’s fully backed by Lloyd’s of London.


If you’re a high-volume shipper, getting the best rate could have the biggest impact on your overall shipping costs. When you opt to purchase cargo insurance from uShip, there’s no need to shop around for the best rates because we’ve already done that for you. We’ve negotiated affordable rates that we’re able to pass down to our business clients, giving even the smallest of companies affordable options that would be hard to find elsewhere.


When making the decision to incorporate cargo insurance into your shipping strategy, you want to know for sure that you’re fully covered. Unlike your carrier’s liability insurance, uShip’s cargo insurance covers 100% of any damage that occurs and pays for the direct physical loss or damage of your item.


If an incident occurs, you’ll want it to be dealt with quickly so you can move on. With uShip, in the rare case that an item is damaged or lost in transit, all claims are remediated within 30 days, making for a fast, easy, and painless process.


We know that sitting on hold with an insurance company is not how you want to spend your time. If you opt to purchase insurance with uShip, you don’t have to worry about filing a claim because we’ll submit your paperwork for you.

Ultimately, the decision to purchase cargo insurance depends on the value of your items and how often you ship. If you’re a high-volume shipper, it really comes down to a numbers game: the more you ship, the greater your chance of loss or a damage claim. At the end of the day, adding cargo insurance is a small investment that will pay off if something ever goes wrong, allowing you to better serve your customers without taking a loss yourself.