Is ShipAid's Shipping Guarantee Insurance? What Its Terms Say (2026)
ShipAid says plainly that it does not insure packages. Here is what its terms and website say about who replaces your order and who decides.
Back to the resource centerKey takeaways
- ShipAid's terms say it "does not provide insurance and does not provide indemnification against loss, damage, or liability arising from a contingent or unknown event."
- The promise comes from the brand: "the brand from which you ordered the product will replace the product free of charge."
- ShipAid tells merchants they control "the policy, customer experience, and claim resolution process."
- ShipAid says "up to 93% of the revenue" from the program goes to the merchant.
- We found no consumer lawsuits naming ShipAid. Route sued ShipAid's operator and founder in 2023; the final outcome is not public to us.
What does ShipAid say about its product?
These are ShipAid's own words, as of October 2026.
“ShipAid does not provide insurance and does not provide indemnification against loss, damage, or liability arising from a contingent or unknown event, but rather, through ShipAid brands provides a delivery guarantee whereby if the product you ordered is not delivered in satisfactory condition, the brand from which you ordered the product will replace the product free of charge.”— ShipAid Terms of Service, shipaid.com/policies/terms-of-service
“We don't insure packages. We protect relationships.”— ShipAid homepage, shipaid.com
“SHIPAID's Shipping Guarantee is a brand-owned delivery protection program that helps merchants protect orders against lost, stolen, damaged, or delayed deliveries. Unlike shipping insurance, merchants control the policy, customer experience, and claim resolution process.”— ShipAid homepage FAQ, shipaid.com
“Traditional insurance sends customers to a third party, while SHIPAID lets merchants resolve issues directly and maintain ownership of the customer relationship.”— ShipAid homepage FAQ, shipaid.com
“…up to 93% of the revenue earned by the protection program that the merchant designs goes directly to their pocket.”— ShipAid blog, shipaid.com/blog
What this means for you as a shopper
ShipAid's terms borrow the wording of a legal definition of insurance ("indemnification against loss, damage, or liability arising from a contingent or unknown event") and say ShipAid does not provide it. What you get instead, per the terms, is a promise from the brand to replace the product if it is not delivered in satisfactory condition.
So your claim goes to the store. ShipAid's blog says the merchant can "determine whether a claim should be approved and for how much or what products to reship." Before paying, ask the store what its guarantee covers, whether it refunds or only replaces, and how quickly it decides.
Who is insured and who pays claims?
| Question | What ShipAid's materials say | Source |
|---|---|---|
| Is it insurance? | "ShipAid does not provide insurance" | Terms |
| Who makes the promise? | "the brand from which you ordered the product will replace the product free of charge" | Terms |
| What does the brand provide? | Replacement "if the product you ordered is not delivered in satisfactory condition" | Terms |
| Who decides claims? | The merchant can "determine whether a claim should be approved and for how much or what products to reship" | Blog |
| Who controls the policy? | "merchants control the policy, customer experience, and claim resolution process" | Homepage |
| Where does the fee go? | "up to 93% of the revenue … goes directly to their [the merchant's] pocket" | Blog |
| Is an insurer named? | No. ShipAid says it does not provide insurance. | Terms |
Is a brand delivery guarantee regulated as insurance?
It depends on state law. Regulators decide whether a product is insurance based on what it does, not its label. California's definition is "a contract whereby one undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event" (Cal. Ins. Code § 22). ShipAid's terms say ShipAid does not provide that. Whether a particular brand's guarantee is treated as insurance in a particular state is for regulators or courts. We are not making that determination.
Regulators' general consumer alerts, which name no company, focus on who stands behind protection offered at checkout:
“Legitimate shipping coverage providers will be licensed as insurance companies or insurance agents.”— Utah Insurance Department consumer alert, March 20, 2024, insurance.utah.gov
The NAIC slide. An undated presentation posted on the NAIC website with committee meeting materials, "Package Protection Offerings - Insurance Regulatory Issues," which carries no author name, lists ShipAid's website among several under a heading "Websites to Review." That is a slide in a presentation. It is not an enforcement action, a finding, or an NAIC position, and we found no regulator action against ShipAid.
Use our 10 questions to ask any provider to compare options. This is general information, not legal advice.
What lawsuits involve ShipAid?
We found no consumer lawsuits naming ShipAid in the court records we reviewed. ShipAid's operator was a defendant in one competitor case:
Route App, Inc. v. Stefan Alexiev, Raw Juicery, and Gowell Market LLC d/b/a ShipAid.com
Allegation D. Utah No. 2:23-cv-00022, filed January 10, 2023 by Route, a competitor. As the court summarized them, Route's claims included breach of Route's terms, interference with contractual relations and Lanham Act false advertising. Route alleged that ShipAid's founder used Route's proprietary information and made false claims about Route. ShipAid's operator filed a counterclaim. These are allegations.
Status: On December 19, 2023, the court dismissed the claims against co-defendant Raw Juicery, without prejudice. We have not found the final outcome of the claims involving ShipAid. Docket
How is InsureShip different?
InsureShip is an insurance program, so the structure differs from a brand guarantee:
- Licensed by the California Department of Insurance, license #0G55434, and licensed in all 50 states.
- Established in 2012. Underwritten by Navigators, a Hartford company, rated A+ by AM Best (Navigators Insurance Company, as of 2024); see The Hartford's Navigators fact sheet.
- Coverage up to $5,000 per shipment for loss, damage and theft, including porch piracy.
- Claims are filed online at /pages/file-claim and handled by InsureShip.
- Pricing averages about $1 per order but is not fixed. See pricing.
Frequently Asked Questions
Is ShipAid insurance?
ShipAid says no. Its terms state "ShipAid does not provide insurance," and its homepage says "We don't insure packages. We protect relationships." (as of October 2026).
Who replaces my order if it arrives damaged?
Per ShipAid's terms, "the brand from which you ordered the product will replace the product free of charge" if it is not delivered in satisfactory condition. Contact the store.
Does ShipAid decide my claim?
ShipAid says the merchant does. Its materials say merchants control "the policy, customer experience, and claim resolution process" and can "determine whether a claim should be approved."
Where does the ShipAid fee go?
ShipAid says "up to 93% of the revenue earned by the protection program" goes to the merchant.
Did regulators take action against ShipAid?
We found no regulator action. An unattributed presentation posted on the NAIC website listed ShipAid's website under "Websites to Review." It is a slide, not an enforcement action, a finding or an NAIC position.
Want licensed shipping insurance at your checkout?
InsureShip is licensed by the California Department of Insurance (#0G55434) and in all 50 states. Established in 2012 and backed by Navigators (The Hartford), rated A+ by AM Best. Talk to us about coverage for your store.
Talk to InsureShipSources
Last checked October 8, 2026. General information, not legal advice. ShipAid Terms of Service · ShipAid homepage · ShipAid blog, "A New Route for Shipping Protection" · Route v. Alexiev docket · Route v. Alexiev order (Dec. 19, 2023) · NAIC committee presentation · Utah Insurance Department alert · Cal. Ins. Code § 22 · The Hartford: Navigators fact sheet (Apr 2025)
If you represent ShipAid and see something out of date, contact us at /pages/contact-insureship and we will review it promptly.
Written by Kyle Gibson, Compliance Auditor · Updated October 9, 2026