Shipping Insurance Glossary: 40+ Terms Explained
Plain-English definitions of the shipping, insurance and chargeback terms merchants and shoppers run into.
Visit the Knowledge BaseUpdated October 2026
Key takeaways
- The insurer carries the risk; the agency or producer sells it.
- Declared value and carrier liability are carrier terms, not insurance policies.
- Exclusions, waiting periods and filing deadlines decide whether a claim pays.
- Whether a package protection product is insurance depends on its terms and state law.
Jump to a letter
A
Additional insured
A person or business added to someone else's policy so they also get the policy's protection for a defined interest. It is common in liability insurance (for example, a landlord added to a tenant's policy) and uncommon on single-parcel coverage.
Admitted insurer
An insurance company licensed by a state's insurance department to sell coverage in that state. Admitted insurers file their policy forms and rates under that state's rules.
AM Best rating
A Best's Financial Strength Rating is AM Best's independent opinion of an insurer's ability to pay its policy obligations. "A+" carries the descriptor "Superior." For InsureShip coverage: coverage is underwritten by Navigators, a Hartford company; Navigators Insurance Company is rated A+ by AM Best (as of 2024, per the Navigators fact sheet).
B
Bulk / enterprise shipment insurance
Coverage a business buys for its own outbound shipments, either all of them or a chosen group, instead of offering it to shoppers at checkout. The business pays the premium and is the party that files claims.
C
Carrier liability
The limited amount a carrier such as USPS, UPS or FedEx may pay if it loses or damages a package, set by the carrier's own terms. It is not insurance. For example, most UPS services carry a default declared value of $100 unless you declare more (Unishippers UPS guide; check the carrier's current terms).
Certificate of insurance
A document that proves coverage exists and summarizes it: who is covered, limits, deductibles, exclusions and effective dates. For InsureShip coverage: the insurance certificate is reproduced in Section 4 of the Terms and Conditions, and it controls if anything else conflicts with it.
Chargeback
A reversal of a card payment that starts when a cardholder disputes a charge with their card-issuing bank. If the bank sides with the cardholder, the money is pulled back from the merchant, who can accept it or contest it with evidence.
Claim
A formal request asking an insurer to pay for a covered loss. A shipping insurance claim says what was lost, stolen or damaged, and includes documents that prove the loss and its value.
Claims portal
The website where you submit a claim, upload documents and follow its status. For InsureShip coverage: file online at insureship.com/pages/file-claim (portal: claims.insureship.com). Claims are handled by InsureShip, not by the store.
Concealed damage
Damage hidden inside a package whose outside looked fine when it was delivered, so it is only found after opening. For InsureShip coverage: concealed damage must be discovered within 15 days of final delivery; damage found 16 or more days later is treated as not occurring in transit.
D
Declared value
The value you state to the carrier when you create a shipping label. It raises the carrier's liability up to the declared amount, usually for a fee, but it remains carrier liability under the carrier's terms, not an insurance policy.
Deductible
The part of a covered loss that the policyholder pays before insurance pays the rest. For InsureShip coverage: a deductible may apply. If it does, it is applied per parcel to the claim amount or the liability limit, whichever is less.
Delivered-not-received (DNR)
A case where tracking shows a package as delivered but the recipient says it never arrived. Common causes include theft from the doorstep, delivery to the wrong address and a mistaken delivery scan.
Dimensional weight
A billing weight carriers calculate from a package's size: length × width × height, divided by a divisor the carrier sets (Uline). Carriers generally charge on whichever is higher, actual or dimensional weight. It affects shipping cost, not insurance coverage.
E
Endorsement
A written change to an insurance policy that adds, removes or adjusts coverage, and that takes precedence over the general policy wording. For InsureShip coverage: items such as laptop computers, mobile phones and televisions are excluded unless endorsed in writing.
Exclusion
A clause listing losses, items, places or situations a policy does not cover. Exclusions are part of the contract, so read them before you rely on coverage.
F
Filing deadline
The last day a claim can be submitted and still be honored. For InsureShip coverage: all claims must be filed within 90 days of shipment.
I
In transit
The period a shipment is in the carrier's hands, from pickup or drop-off until final delivery. Shipping insurance is built around losses that happen during this window.
Inherent vice
A quality inside an item that makes it deteriorate or destroy itself, such as food spoiling or a battery degrading, without any outside event. Most property and cargo policies exclude it. For InsureShip coverage: losses from inherent vice, decay, and changes in temperature or humidity are excluded.
Inland marine insurance
Property coverage for goods that move or are held by someone else, such as items in transit over land. Despite the name, it usually has nothing to do with water; parcel shipping insurance is often written in this or the marine family of coverage.
Insurance agency
A business licensed to sell, solicit and service insurance on behalf of insurers. It is not the insurer; the insurer carries the risk and pays covered claims. For InsureShip coverage: InsureShip is a brand of Online Shipping Insurance Services, Inc., a licensed insurance agency (California Department of Insurance license #0G55434).
Insured
The person or business whose property or interest a policy protects, and who can collect if a covered loss happens. For checkout shipping insurance, the shopper who bought the coverage is usually the one who files the claim.
Insured value
The amount of coverage placed on a shipment, normally its real value as shown on the invoice. A claim pays the actual covered loss, up to the insured value and the policy limit, less any deductible.
Insurer
The company that issues the policy, takes on the risk and pays covered claims. Also called the insurance company or carrier (not to be confused with the shipping carrier). For InsureShip coverage: coverage is underwritten by Navigators, a Hartford company.
L
Licensed producer
A person or business licensed by a state to sell, solicit or negotiate insurance. Agents and brokers are both producers. You can look up a producer's license on your state insurance department's website.
M
Marine cargo insurance
Insurance for goods while they are being transported, originally by sea and now by sea, air and land. Cargo policies can cover one shipment or every shipment over a period.
N
Non-admitted (surplus lines) insurer
An insurer not licensed in a given state that may still write certain coverage there through a specially licensed surplus lines broker, usually when admitted insurers do not offer it. Surplus lines coverage follows different state rules than admitted coverage.
Non-delivery claim
A claim for a package that never reached the recipient. Insurers usually require a wait before you file, so a late package has time to turn up. For InsureShip coverage: wait 20 days (domestic) or 30 days (international) after shipment before filing.
O
Open cargo policy
One policy that automatically covers all of a business's shipments over a set period, often a year. The shipper reports shipments periodically, and premium is worked out from those declarations, so no one has to buy coverage package by package.
Opt-in vs opt-out checkout
Opt-in means the shopper must actively choose coverage, for example by ticking an unchecked box. Opt-out means coverage is pre-selected and the shopper must remove it. For InsureShip coverage: InsureShip recommends, and configures by default, an opt-in (unchecked) checkout offer.
P
Package protection / shipping protection
A checkout add-on that promises a refund or reshipment if an order is lost, stolen or damaged. Some products are insurance and some are a service or merchant guarantee; which one it is depends on its terms and on state law and regulators.
Policy limit
The most a policy will pay for a covered loss. For InsureShip coverage: coverage reaches up to $5,000 per shipment, subject to policy terms.
Policyholder
The person or business that owns an insurance policy and is responsible for its premium. The policyholder and the insured are often the same, but not always.
Porch piracy
Theft of a package from a doorstep, porch or mailroom after the carrier has delivered it. For InsureShip coverage: theft, including porch piracy, is covered subject to the policy terms.
Proof of delivery
The carrier's record that a package was delivered, such as a delivery scan, time and location, a photo, or a recipient signature. It matters in delivered-not-received disputes and chargebacks.
Proof of loss
The formal statement and supporting documents a claimant gives an insurer to show what was lost and its value. For InsureShip coverage: you need the claim form, the invoice, a signed and dated statement from the recipient, and proof of damage (photos of the item, box and label) where it applies.
S
Self-insurance
Choosing to absorb losses yourself rather than buying coverage, for example by refunding or reshipping lost orders out of your own budget. It tends to suit frequent, low-cost losses and gets expensive when losses are large or spike.
Shipping insurance
An insurance policy that pays for a shipment that is lost, stolen or damaged in transit, subject to its terms, limits and exclusions. It is issued by an insurer and sold by licensed producers.
Signature confirmation
A carrier add-on that requires someone at the address to sign for the package and gives the sender a record of the signature and delivery details. USPS notes it does not speed delivery (USPS).
Sub-producer
A person or company that sells insurance under the arrangement of another licensed agency, rather than directly with the insurer. Licensing rules for sub-producers vary by state, so check your state's requirements.
Subrogation
An insurer's right, after paying a claim, to recover the money from whoever caused the loss. For InsureShip coverage: after paying a claim, the underwriters take over the right to recover from the carrier, and the insured agrees to help.
U
Underwriter
The insurer, or the person working for it, that evaluates a risk, decides whether to cover it and sets the price. "Underwritten by" names the company that carries the risk. For InsureShip coverage: coverage is underwritten by Navigators, a Hartford company.
V
VAMP
The Visa Acquirer Monitoring Program, which flags merchants and acquirers whose ratio of fraud reports plus disputes to settled card-not-present transactions passes Visa's thresholds (Visa fact sheet). Flagged merchants and acquirers must put risk controls in place.
Visa 13.1 / 13.3
Visa dispute reason codes. 13.1 is "Merchandise/Services Not Received" and 13.3 is "Not as Described or Defective Merchandise/Services." Lost or stolen parcels tend to show up as 13.1 and items damaged in transit as 13.3.
W
Waiting period
The time you must wait after shipment before filing a lost-package claim, so delayed parcels can still arrive. For InsureShip coverage: 20 days for domestic shipments and 30 days for international shipments. Damage can be reported right away.
White label insurance
Insurance offered under a partner's brand, such as a platform, 3PL or agency, while a licensed agency and insurer stand behind the coverage and handle the regulated parts.
How do shipping insurance, declared value and package protection compare?
| Term | Who stands behind it | What sets the rules |
|---|---|---|
| Shipping insurance | An insurer, sold by licensed producers | The policy or certificate and state insurance law |
| Declared value / carrier liability | The shipping carrier | The carrier's own terms and limits |
| Package protection | Varies: an insurer, a provider or the merchant | The product's terms; state law and regulators decide if it is insurance |
| Self-insurance | You | Your own refund and reship policy |
Frequently Asked Questions
What is the difference between package protection and shipping insurance?
Shipping insurance is a regulated insurance policy issued by an insurer and sold by licensed producers. Package protection is a broader checkout label: some products are insurance and others are a service or merchant guarantee. Read the terms to see who pays claims and under what contract.
Is declared value the same as shipping insurance?
No. Declared value raises a carrier's liability under the carrier's own terms, usually for a fee. Shipping insurance is a separate policy from an insurer with its own coverage, limits and exclusions.
What is the difference between an insurance agency and an insurer?
The insurer issues the policy, carries the risk and pays covered claims. The agency is licensed to sell and service that insurance. InsureShip is a licensed agency; its coverage is underwritten by Navigators, a Hartford company.
How long do I have to wait to file a lost package claim?
It depends on the policy. For InsureShip coverage, wait 20 days after shipment for domestic packages and 30 days for international packages, and file every claim within 90 days of shipment.
Does shipping insurance cover porch piracy?
Many policies cover theft after delivery, but check the terms. For InsureShip coverage, theft including porch piracy is covered up to $5,000 per shipment, subject to the policy terms.
Want licensed shipping insurance at your checkout?
InsureShip covers loss, damage and theft in transit, including porch piracy, up to $5,000 per shipment, subject to policy terms. Talk to us about adding an opt-in offer to your store.
Contact InsureShipSources
Last checked October 24, 2026. Definitions are written in our own words. InsureShip details summarize the insurance certificate in the Terms and Conditions, which controls. General information, not legal advice.
- NAIC Glossary of Insurance Terms
- AM Best, Guide to Best's Financial Strength Ratings
- Navigators fact sheet
- IRMI, inherent vice
- IRMI, proof of loss
- Hiscox, certificate of insurance
- Visa Acquirer Monitoring Program fact sheet (2025)
- Chargeback Gurus, Visa reason codes
- USPS, What is Signature Confirmation
- Uline, What is UPS dimensional weight
- Unishippers, UPS declared value
- APEDA, cargo insurance open vs specific policy