If you want to save a small amount of money when covering your package, you can "stack" third-party insurance on top of the carrier protection you receive through USPS and UPS by buying labels on Pirate Ship. Here's how to do that and what you need to know.
How to combine Shipsurance on top of USPS or UPS coverage
To "stack" Shipsurance on top of the built-in carrier insurance from USPS or UPS, simply enter the amount of extra coverage you want to pay for in the Declared Value field. For example, if you're sending a Priority Mail package with a total value of $300, you can enter $200 in the "Declared Value" field when adding extra insurance to your label, since all Priority Mail labels on Pirate Ship come with $100 of built-in insurance already.
With this option, you'll need to file a claim with both Shipsurance and either USPS or UPS for the remaining value of your shipment 😉
Enter the right amount in the Declared Value field to "activate" Shipsurance
Since built-in carrier insurance from USPS or UPS isn't removable at all, you're not able to add Shipsurance coverage to services that already include insurance for amounts under that included protection. Here's an example to show you what we mean:
Since Priority Mail labels come with $100 of coverage from USPS, you'll need to enter a Declared Value of at least $101 (or $1 more than the coverage you automatically get) in order to "activate" Shipsurance. Priority Mail International labels come with $200 of coverage, so you'll need to enter at least $201 in the Declared Value field. This way, Shipsurance will kick in because you're paying for protection that's higher than the amount you're automatically covered for.
On the other hand, if you're buying a Priority Mail label and you enter $30 as your Declared Value, Shipsurance won't be activated at all. Simply put, you can't add Shipsurance coverage for an amount that the package is technically already insured for 😅
How much coverage does my package come with already?
If you want to stack Shipsurance on top of your automatic carrier protection, you should know the coverage get with each USPS and UPS service you purchase on Pirate Ship:
Domestic Priority Mail labels: $100 of coverage included
Priority Mail Express labels: $100 of coverage included
Priority Mail International labels: $200 of coverage included
Priority Mail Express International labels: $200 of coverage included
All domestic and international UPS labels: $100 of built-in coverage
First Class Package, First Class Package International, Parcel Select Ground, Media Mail, and Simple Export Rate do not have included carrier coverage.
Don't forget to include the cost of postage in your "Declared Value"
When purchasing coverage through our third-party insurance provider, Shipsurance, always include the cost of postage if you want that to be reimbursed if and when a claim is needed. This way, you'll be covered for the full value of your package, including the price you paid for your shipping label.
USPS & UPS insurance claims are different from Shipsurance
It's important to note that insuring your product cost and the cost of postage specifically refers to Shipsurance claims. Insurance claims for the built-in coverage included with UPS and USPS labels (Priority Mail & Priority Mail Express only) are different, depending on the type of claim you need to file.
When filing a missing package claim with USPS, there will be a field available in the claims form to declare your postage cost. There, you'll need to enter the value you paid for postage in Pirate Ship, and must use your Shipment page as proof of payment. USPS will provide compensation for the postage cost for missing package claims.
For claims for damaged packages, USPS won't provide request compensation for the postage cost. This is because USPS has fulfilled the underlying service that was paid for (transit and delivery of the package), even if the contents were damaged in the process. So, you'll only be compensated for the cost of your product(s) when filing a claim for a damaged package.
UPS always refunds the postage cost on top of the product cost, regardless of whether you file a claim for a damaged or missing package. For instance, you could claim $100 in product costs and receive a total payout of $130 if your label was $30.
Any questions? Feel free to chat with our Support Crew by clicking the blue button - we're happy to get you sailing in the right direction ⛵