Whether you're an e-commerce business shipping products to customers or an individual sending a valuable item abroad, shipping insurance gives you financial protection if something goes wrong in transit. This guide covers everything you need to know - what shipping insurance is, what it covers, how much it costs in the UK, and how to make a claim with DHL Express.
What is shipping insurance?
Shipping insurance (also called parcel insurance or shipment insurance) is an optional service that provides financial reimbursement if your shipment is lost, stolen or damaged during transit. It covers 100% of the declared value of your goods, meaning you can replace or refund your customer without absorbing the loss yourself.
Unlike standard carrier liability - which typically covers only a fraction of a shipment's value - shipping insurance is based on the actual declared value of your goods. This makes it particularly valuable for businesses shipping high-value products, fragile items, or anything internationally.
In This Shipping Insurance Guide
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What does shipping insurance cover?
Shipping insurance can cover everything from e-commerce goods to important documents like legal certificates. Different carriers will offer various insurance models, but generally offer compensation in the event of:
- Shipping delays
- Lost or misplaced goods
- Theft of goods
- Damage to the goods in transit
Typically, the cost of the insurance is linked to the value of the goods. This is particularly relevant for businesses shipping high-value goods such as electronics, jewellery, or bespoke products, as well as anyone sending personal effects or important documents internationally.
The wider the range of goods you ship and the more markets you sell into, the more valuable comprehensive shipping insurance becomes. Shipping insurance is particularly valuable if you are shipping internationally, where goods pass through more handling points and customs processes - read our guide to shipping internationally for a full overview of what to consider.
What shipping insurance does not cover
Shipping insurance generally will not cover the following occurrences
- Damage caused by the parcel or its contents, such as the contents leaking
- Loss in weight or volume, wear and tear of the shipment
- Loss, damage or expense caused by insufficient or unsuitable packing or preparation of the shipment - This is one of the key reasons why using correct protective packaging matters.
- Loss, damage or expense attributed to the wilful misconduct of the customer or its agents
It is also worth being aware that indirect losses - such as loss of revenue caused by a delayed shipment, or the cost of a missed business deadline - are generally not covered under standard shipping insurance policies.
The risks of shipping without insurance
Whether or not you need shipping insurance is down to you. Are your goods high value? If one shipment goes missing, will it cause you financial pain? It’s worth bearing in mind that very few shipments will be lost or damaged. But if it does happen, shipping insurance provides financial cover and peace of mind for business owners. Skipping shipping insurance is one of the common mistakes e-commerce businesses make - often only realising the risk after a first significant loss.
The risk of loss or damage is also heightened during peak season shipping, when carrier networks are under greater pressure and volumes are at their highest.
Again, the risks are low. Every day, DHL successfully delivers thousands of parcels without loss, damage or theft. But there are always edge cases, as with any large, complex global logistics operation. If you are still working out your overall approach, our guide to setting up shipping for your small business covers everything from carrier selection to cost management.
How much does shipping insurance cost in the UK?
It depends on the value of your shipment. If your e-commerce business ships big-ticket items like electronics or furniture, the loss of revenue could be significant – so you should probably take out shipping insurance. Be sure to factor in the cost of shipping insurance to your budget sheet and margin projections. Shipping insurance is cheap because the risk of loss, damage or theft is very low.
If you are shipping abroad, insurance is just one part of the overall picture - our guide to international shipping costs covers duties, taxes and other fees you should factor in.
Three advantages of using shipping insurance
If you're shipping goods, it's a smart idea to consider purchasing shipping insurance to protect your items. Here are three major reasons to take out shipment insurance.
No loss of revenue
For e-commerce businesses, especially those that deal with high-value goods, knowing you will receive 100% of the value of your lost goods is both reassuring and good business. It means you can confidently and quickly resend the goods to your customer in the event of a lost or damaged item. This means you don’t lose money or all-important customer confidence.Peace of mind
Customer satisfaction amongst online shoppers is heavily influenced by the shipping process. Poor delivery experiences caused by delays and damages can harm loyalty and damage your chances of repeat business. Providing shipping insurance protects both your bottom line and your reputation.
Hassle-free claims process
If something does go wrong with a shipment, having insurance means you can file a claim for reimbursement quickly and easily. When you choose a logistics partner with an efficient and reliable claims process, you can replace or refund orders promptly, providing a seamless experience for your customers.
How to make a claim with DHL Express
You’ve shipped your product but the worst has happened: it’s been lost in transit or has been delivered damaged. Your first step is to contact our customer service team, who will start an investigation. Your claim must be submitted within 30 days of the date that your shipment was accepted by DHL. They will alert the relevant service points within our network to gather more information, including pictures and details pertaining to the case. You can expect an update on the findings approximately 3 days later.
To support your claim, it helps to have the following ready:
- Proof of the shipment's value (such as an invoice or receipt),
- Photographic evidence of any damage where applicable
- Your shipment tracking number.
The more complete your documentation at the point of submission, the smoother and faster the resolution process will be. DHL Express customer service can advise on exactly what is required for your specific type of claim. One of the best ways to avoid a claim altogether is preparing your shipment correctly from the start - follow our step-by-step guide to make sure your goods are protected before they leave your hands.
Shipping insurance FAQs
What is the difference between insured shipping and standard shipping?
Standard shipping includes basic carrier liability, which covers only a fraction of your shipment's value - sometimes calculated per kilogram rather than on actual goods value. Insured shipping covers the full declared value of your shipment, so if something goes wrong you are reimbursed in full, not a nominal default amount.
Can individuals use shipping insurance, or is it only for businesses?
Shipping insurance is available to both businesses and individuals - it is not exclusive to commercial use. It is particularly useful for sending valuable personal effects overseas, shipping jewellery or electronics, or relocating belongings internationally. What is priority insured shipping?
What is priority insured shipping?
Priority insured shipping combines an express delivery service with shipping insurance in a single arrangement. Your parcel is sent via a fast, fully tracked service and is covered against loss, theft or damage throughout its journey.
Can I get shipping insurance for a one-off shipment without a contract?
Yes. DHL Express shipping insurance is available on a per-shipment basis with no long-term contract required, making it accessible for both businesses with variable shipping volumes and individuals sending a single high-value item.
Does shipping insurance cover international shipments?
Yes. DHL Express shipping insurance covers international shipments, which is where insurance is most valuable - cross-border deliveries involve more handling touchpoints, customs processes and transit time, all of which increase risk.
Does shipping insurance cover theft after delivery?
No. Coverage applies while the shipment is in the carrier's care, from collection through to confirmed delivery. Theft that occurs after successful delivery is generally not covered, as carrier responsibility ends at that point.
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