Is Small Parcel Insurance Worth it? | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. 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Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [View Demo](https://app.lojistic.com/demo) [ Log In](https://app.lojistic.com/demo/account/login?trackDemo=false) Is Small Parcel Insurance Worth it? =================================== ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)April 18, 2011 Shipments under 150 lbs are typically considered small parcel. Most shipping companies like FedEx and UPS will insure such packages up to $100 of product loss or damage. This is one reason many e-commerce sellers ship low cost items without insurance. If you're shipping something fragile, or if you just need more protection, you can opt for "[declared value](https://www.lojistic.com/blog/5-dirty-secrets-about-carrier-declared-value-insurance)" insurance, which both FedEx and UPS offer. At this point, it's best to compare UPS and FedEx. Some third party insurance companies will insure your packages for 50 percent less than the carriers charge. When you buy small parcel insurance and make a claim, you need to understand the procedure for collecting the insurance payment. One of the major complaints about extra small parcel insurance is the many "hoops" you have to jump through to file a claim and ultimately collect on the insurance. The small parcel claims process can be labyrinthine in nature, requiring you to fax physical proof of shipment and the invoice value to receive full compensation. Here again, you'll want to compare [UPS and FedEx](https://www.lojistic.com/shipping-analytics-software/shipping-cost-comparison "UPS and FedEx Rates Calculator") for the easiest procedures, should you have to file. One of the things you have to do in many small parcel claim processes is approach the intended recipient to sign the claim. In some cases, they may not want to sign it to avoid the paperwork and hassle--the forms are long, intimidating and filled with ‘legalese’. If you use UPS or FedEx, the automatic $100 coverage will save you and the recipient from these hassles. That said, some shippers have developed software that automates the claims process, letting you file claims in seconds with just a few mouse clicks. You will want to compare UPS and FedEx against other parcel insurance providers to see which have the simplest filing and recovery procedures. ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) Author Rich Harkey Rich Harkey Senior Strategy Manager Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry. As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts. Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results. [« Previous Post](/blog/all-freight-audit-companies-are-not-alike) [Next Post »](/blog/your-shipping-contract-and-how-to-avoid-international-shipping-problems) **Lojistic Blog** [Recent Posts](https://www.lojistic.com/blog) | [Categories](https://www.lojistic.com/blog/categories) Why Lojistic ---------------- - [All-Inclusive. Zero Cost. ](https://www.lojistic.com/pricing) - [All Modes. All Carriers. 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