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Can I combine third-party insurance with built-in carrier insurance?
Can I combine third-party insurance with built-in carrier insurance?

How to "stack" coverage from Shipsurance on top of protection you automatically get from USPS or UPS

Updated over a week ago

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

  • Stacking Shipsurance Coverage: To "stack" Shipsurance on top of the built-in carrier insurance from USPS or UPS, 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 $400, you can enter $300 in the "Declared Package 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.

    • You'll find the Declared Value section under the "Extra Services" when creating a label. Here's how that looks:

  • Stacking Insurance Requires Two Claims: When you "stack" third-party insurance as extra coverage, you'll need to file a claim with both Shipsurance and either USPS or UPS for the remaining value of your shipment 😉

How much coverage does my package come with already?

  • Insurance You're Starting With: If you want to stack Shipsurance on top of your automatic carrier protection, you should know the coverage you get with each USPS and UPS service you purchase on Pirate Ship:

    • USPS Ground Advantage labels: $100 of coverage included

    • 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

  • Services With No Coverage: First Class Package International, 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"

  • Include Postage Costs in Your Coverage: 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 handle reimbursing postage costs differently 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.

  • Claiming Postage Costs for USPS Claims: When filing a missing package claim with USPS, you'll see a field in the claims form where you can 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.

      • You'll only be compensated for the cost of your product(s) when filing a claim for a damaged package.

  • Claiming Postage Costs for UPS Claims: 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.

Let us know if we can help out!

Any questions about stacking third-party insurance on top of USPS or UPS coverage? Chat with ARRrrr Support Crew by clicking the blue button - we're happy to get you sailing in the right direction ⛵

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