GUIDE: How Does USPS Insurance Work?

How USPS Insurance Works Multiorders

Although e-commerce looks like a convenient and easy to start business opportunity, there is one obstacle which you need to take care of. Without a physical store, you cannot hand over your product directly to your customer.

In other words, you need to find a shipping carrier for that. Even if you choose to work with a trustful shipping company like USPS, there still might be some hiccups. For example, weather conditions, possible damages during a shipment or missing pieces. In other words, accidents happen to the best of us and even the most established shipping carriers are not insusceptible to them. To assure sellers and their customers USPS insurance was created and in this article, we will explain how it works.

USPS insurance

USPS insurance

As mentioned before accidents happen, and all you can do about it is to prepare your parcel for possible damage. That is why all of the most prominent shipping carriers have an insurance option to avoid the consequences of unforeseen incidents. Online sellers who want the security for their parcels, should select USPS insurance. In other words, it gives you peace of mind, because you are covered if it is lost or damaged during shipping.


USPS insurance rates

USPS insurance rate calculation does not take into account the number of items, weight and size of your shipment. It is based on the total value of your shipment. It is the most effective way to calculate the cost of immunity from damages.

Basically, it is a small percentage of the whole shipping price. Besides that, USPS insurance also includes delivery confirmation. This prevents you not only from damages, but also from getting scammed by false claims.



What is covered by USPS insurance?


  • Damages

First of all, USPS insurance protects online sellers from parcel damage during a USPS transit. In other words, it helps you recover from the loss, that might happen due to an accident, bad weather conditions, etc. For example, you have an order of vintage books, and in the delivery point, your customer informs you that there is irretrievable damage caused by rain. Without USPS insurance you might end up paying a heavy price to refund your customer. Insurance will cover losses that occurred in USPS transit – to a point.


  • Missing contents

Another major risk which could happen during a shipment is missing items. Just imagine, how busy one of the most popular shipping carriers is, in the holiday season. Despite the fact, that they claim to keep everything in order, USPS is filled with parcels. Additionally, it can cause some parcel distribution errors. USPS insurance guarantees to pay back for the item as soon as possible.



How to activate USPS insurance?

First of all, as an online seller, you should already be aware of the way to fulfil orders in the most efficient way. Using a shipping management software like Multiorders, helps you process shipments four times faster. Because of integration with USPS you get the possibility to ship with USPS insurance. All you have to do is click on the USPS logo and then choose the option to send with insurance. That is a cost-efficient way to protect your parcels, by also getting all the other benefits:


  • Inventory management
  • Tracking numbers & USPS labels
  • Faster order fulfilment


  • Inventory management. Multiorders has integrations with all of the most popular sales channels, which simplifies your inventory management. Because of an adjusted inventory system, all changes which you do in instantly shows up in a certain marketplace. It is a time-efficient way to modify stock-levels, pricing, etc.

USPS insurance


  • Tracking numbers & USPS labels. As soon as you receive an order simply click on the USPS logo, then select the USPS insurance option and Multiorders will do the rest. It automatically generates all the tracking numbers, so there is no need to check or update any shipping information yourself. Automatically mark your order as dispatched on all platforms with tracking numbers. Because of our USPS shipping integration, the system automatically adds the tracking number to each marketplace and additionally informs your customer.

USPS insurance

  • Faster order fulfilment. As mentioned before Multiorders has integrations with all of the most popular sales channels, as well as USPS. This creates a single order management system. Having all orders and shipments in a single dashboard allows you to escalate your business. With Multiorders you fulfil any order four times faster.

USPS insurance