Add Insurance to Shipments

Explains the insurance options available in ShipStation and how to add insurance to shipments.

You may wish to insure your shipments to help protect you should your shipments ever get lost or damaged en route to your customers. ShipStation provides a few ways for you to add insurance to your parcels before creating a label:

  • Total Shipping Protection by XCover (ShipStation's official insurance partner)

  • Carrier Insurance (insurance provided through the parcel carrier)

You can manually add insurance to your parcels when configuring your shipment or have ShipStation add it automatically with an Automation Rule.

Insurance Purchased Outside of ShipStation

If you have an account with an insurance provider not available in ShipStation, you can indicate which shipments this insurance covers by selecting the Other option from the Insurance drop-down menu. This is for record-keeping purposes only.

If you added insurance to a shipment and need to know how to file a claim, visit our How do I file an Insurance claim? help article.

How to Add Insurance

There are several ways to manually add insurance in ShipStation:

You can also create an Automation Rule that will add insurance to shipments when the orders import and meet the rule's criteria (for example, the order contains a specific item, exceeds a certain value, or ships to a specific location).

The sections below explain each way to add insurance in ShipStation.

Individual Shipment

Multiple Shipments

To add insurance to multiple shipments at once:

  1. Select the orders you wish to add insurance to.

  2. Click Bulk Update and choose Insurance.

  3. Select the type of insurance to add.

  4. Enter the Insure Amount.

    When specifying an Insure Amount, enter the full amount you wish to declare. Do not subtract the carrier's default coverage amount.

  5. Choose Update Selection.


You can then continue creating the labels for these shipments.

Add Insurance to Multi-Package Shipments

If you create a multi-package shipment, the Insured Amt. field will be disabled. You must add insurance to each package of the shipment individually.

Insurance Automation Rule

You can create an Automation Rule so ShipStation will automatically add insurance to orders as soon as they import if the orders meet specific criteria.

Learn About Automation Rules

If you are unfamiliar with creating Automation Rules, review our Introduction to Automation Rules and Create Automation Rules help articles to learn how they work.

In this Automation Rule example, the rule action adds Total Shipping Protection to all orders that meet the rule criteria. The rule criteria can be anything you choose, but for this example, the rule applies Total Shipping Protection if the order ships from a specific Ship From Location and has an Order Total greater than or equal to £100.


Things to keep in mind when creating insurance Automation Rules:

  • Use numbers only for currency amounts. Special characters for currency ($, £, ¢, €, etc) cannot be used in the fields for numerical values.

  • When an automation rule adds insurance to an order, the insured amount will always default to the order’s Amount Paid. You cannot set a different amount in the rule, but you can manually adjust the amount on the order before you create the label, if needed.

Insurance Types Available in ShipStation

Total Shipping Protection by Xcover

Total Shipping Protection by XCover is a shipment insurance option available to all AU- and UK-based ShipStation accounts and can be added as the insurance provider for any shipment using ShipStation Carriers. Fees for Xcover insurance are pulled from your ShipStation Balance.

Total Shipping Protection covers shipments that have been lost, stolen, or damaged in transit. Total Shipping Protection will also reimburse you for return shipping costs (when your customer ships back damaged goods) and for the cost to reship new goods to your customer.

The cost of coverage is calculated based on the amount entered in the Insure Amt. field when you configure your shipment. Total Shipping Protection costs 1.25% of the Insure Amt. for domestic shipments and 1.75% of the Insure Amt. for international shipments.

Please see our guide to Total Shipping Protection by XCover and Total Shipping Protection's ShipStation partner page for more details on coverage, claims, and refunds.

Carrier Insurance

Some carriers offer their own additional insurance coverage, which you can add if your shipment is valued above their default coverage amount. Default coverage is the maximum value the carrier will protect against without purchasing additional insurance. No additional insurance needs to be added for shipments at or below the default coverage value.

For shipments valued above the default amount, add Carrier Insurance to the shipment if you wish the package to be covered entirely by the carrier. Keep in mind that this will result in a higher rate for your shipping label.

Please note that not all carriers provide default coverage or the ability to purchase additional carrier insurance. Additionally, the default loss/damage coverage, if available, is determined by each carrier. If you are unsure of the default coverage provided by your selected carrier, review your carrier's help centre or contact your carrier support team.

Other Insurance

If you have purchased third-party insurance outside of ShipStation, you can indicate this per shipment in ShipStation. This option is available so you can identify that you purchased insurance for a shipment for a specific declared value. However, this option does not provide any additional access to file an insurance claim or allow you to enter the name of the insurer. It is for record-keeping purposes only.

Enable or Disable the Carrier and External Insurance Options

While Total Shipping Protection will always be available to add to a shipment, you can enable or disable the Carrier and External Insurance options, depending on whether you plan to use them. When disabled, the Insurance drop-down menu will not display the Carrier or External Insurance options.

To enable or disable these insurance types, go to Settings > Shipping > Insurance and click the toggle switch to the desired setting for each option.