EStore Tools

Shipping Insurance Calculator

Compare self-insuring, your carrier's free included coverage and third-party shipping insurance, at your own loss rate.

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Your numbers

Your shipments
orders

Product value plus shipping, the amount you'd need to refund or replace if it's lost or damaged.

$

Check your own claims and refund history. 0.5-1.5% is a common range for small parcel.

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Coverage options

USPS includes $100 with Priority Mail, Priority Mail Express and Ground Advantage. Check your own carrier and service.

$

Cost per $100 of declared value. Providers price very differently: get a real quote and replace this estimate.

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Carrier claims are often slower and stricter than third-party providers. Use your own experience if you have it.

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Your result · updates as you type

Cheapest option this month

Carrier's included coverage only

Expected monthly cost of about $62, against $316 for the most expensive option, at a 0.8% loss rate.

Self-insure (no coverage)
$312
Carrier's included coverage only
$62
Third-party insurance
$316

The third-party rate and claim-approval share are estimates: get a quote from a real provider (Route, Shipsurance, and others price differently) and use your own claims history once you have it. This is meant to frame the decision, not replace a quote.

Expected monthly cost by option
Self-insure (no coverage)
$312
Carrier's included coverage only
$62
Third-party insurance
$316

Breakdown

Expected losses per month
4.8
Value at risk per loss
$65.00
Carrier covers up to
$65.00
Self-insure: full loss, no premium
$312
Carrier only: unrecovered loss above the free limit
$62
Third-party: $254 premium + $62 unrecovered
$316

Three ways to cover a lost or damaged package

  • Self-insure. Pay for every loss out of pocket, with no premium. Cheapest when your loss rate is low and packages are low value.
  • Carrier's included coverage. USPS automatically includes $100 of insurance with Priority Mail, Priority Mail Express and Ground Advantage, at no extra charge. UPS and FedEx include a base level of liability too. Above that limit, or if a claim is denied, you cover the rest yourself.
  • Third-party insurance. A per-shipment premium, usually priced per $100 of declared value, that pays out on approved claims regardless of the carrier's own coverage limit. Rates and claim approval speed vary a lot by provider.

The calculator compares the expected monthly cost of each option: for self-insure and carrier-only, that's your expected losses; for third-party, it's the premium plus whatever a claim doesn't cover.

Getting real numbers

The third-party insurance rate and claim-approval share in this calculator are estimates to frame the decision. Get an actual quote from a provider such as Route, Shipsurance or a similar service, and once you have a few months of your own claims history, replace the loss rate and approval share with your real figures.

Questions people ask

Is shipping insurance worth it for a small store?

It depends on your loss rate and package value. At a low loss rate and modest declared value, self-insuring or relying on the carrier's included coverage is often cheaper than paying a premium on every order.

Does USPS Priority Mail already include insurance?

Yes. USPS includes up to $100 of insurance with Priority Mail, Priority Mail Express and Ground Advantage at no extra charge.

What's the difference between carrier insurance and third-party insurance?

Carrier insurance is included or purchased directly from USPS, UPS, FedEx or DHL, and is capped at their coverage limit. Third-party insurance is bought separately, often covers more of the declared value, and can have a faster or slower claims process depending on the provider.

How do I find my own loss rate?

Divide the number of packages you've had to refund or replace for loss or damage by the number you shipped over the same period. A few months of data gives a much more reliable number than an industry estimate.

Related tools

Cost of Returns CalculatorSee what a return really costs once you add the label, restocking time, support time, write-offs and the payment fee you don't get back.Dimensional Weight CalculatorSee the billable weight USPS, UPS, FedEx and DHL will actually charge for a box, using each carrier's current divisor and rounding rules.3PL Cost CalculatorAdd up receiving, storage, pick, pack and shipping fees to estimate a 3PL's monthly bill, and compare it with what you pay now.USPS Zone CalculatorLook up the USPS shipping zone for a delivery based on distance, so you can see roughly what it'll cost before you check a rate.

Want this builtinto your store?

I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.

Emmanuel Asika

Emmanuel Asika

Shopify & WooCommerce developer, Dublin

I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.

hello@emmanuelasika.com
See my work

Last reviewed 30 September 2026.

Sources: USPS: Insurance & extra services