If you declare a value for your shipment, and if the shipment is lost or the contents damaged in transit, you would be eligible for compensation from the carrier for up to the declared value amount. If you do not declare a value for your package, then a carrier's liability is limited to the basic coverage included in the service you used to ship your package. Generally, claims will be denied if the item was not properly packaged. This may occur if there is no exterior damage to the packaging but the contents are damaged.

The coverage provided by the carriers does not replace your insurance, but it does help to protect you in case the carrier is responsible for losing or damaging your goods. Carriers generally will compensate you for the lesser of (1) the actual value of the goods or (2) the amount you declare as the value of the goods. The cost of loss protection varies, depending on the carrier and the service you select.

Each carrier has different rules regarding loss protection. For example, DHL, FedEx, and UPS provide at least $100 of coverage in their basic shipping rates. On the other hand, the U.S. Postal Service provides $500 of coverage with its Express Mail Service, but no coverage is included with Priority Mail or Parcel Post.

Limits on Coverage

In addition, each carrier permits only a certain amount of coverage, and a different amount of coverage may be allowed depending on the packaging or the service you select. For example, you can purchase loss protection for up to $50,000 for a FedEx Box, but only up to $500 for a FedEx Letter.

The basic rules for coverage are summarized below. Fortunately, you don't need to memorize this chart. Just type the value of the item you are shipping in the Add Carrier Loss Protection box. The iShip, Inc. shipping charges grid will automatically display services and prices available for that amount of coverage. Some services will not appear on the shipping charges grid if you select a high amount of coverage - iShip, Inc. will not display services that are unavailable if your coverage exceeds the maximum.

Carrier/Service	Basic Coverage	Maximum Coverage
UPS Standard	$100	$50,000
UPS Prepaid Letter	$100	$100
USPS Express Mail	$500	$5,000
USPS Priority Mail	$0	$5,000
USPS Parcel Post	$0	$5,000
FedEx Standard	$100	$50,000
FedEx Letter, Packet, Pak	$100	$500
DHL	$100	$50,000

Restrictions and Exclusions

Each carrier has restrictions on the types of items they will cover. Most carriers will not permit any loss protection coverage beyond basic coverage for unique items (such as artwork), for items of extremely high value (such as antiques), or for perishable items. If your item is worth more than the maximum allowed declared value, check with the carrier before shipping it.

If you are planning to ship one of the following types of goods, check with the carrier first.

• Perishable goods
• Goods requiring protection from heat or cold
• Goods worth more than the maximum allowed declared value
• Goods of unusual value
• Antiques or museum articles
• Fragile items such as glassware or ostrich eggs
• Jewelry, furs, precious metals
• Stocks, bonds, cash equivalents
• Coins
• Stamps
• Hazardous or dangerous materials (including anything flammable, corrosive, explosive, infectious, or radioactive)
• Firearms or fireworks
• Tobacco or alcohol
• Live animals or plants