Shipping Insurance Scams: Consumer & Merchant Resource Center
Plain-English guides to checkout shipping protection: how to check what you are buying and how to get help.
Report a problemReviewed by Jazmin A., Compliance Auditor · Updated October 2026
Key takeaways
- Whether a product is insurance is decided by state law and regulators, based on what it does, not what it is called.
- The regulator alerts are warnings, not enforcement actions, and none of them names a company.
- Before you pay, check who offers the coverage, whether an insurer and a licensed seller are named, and who decides claims.
- If something went wrong, you can report it and, separately, ask the merchant or your card issuer about a refund.
- Merchants who add a protection fee at checkout should know what their app's terms say about who bears the risk.
Report it
- State insurance department. For licensing questions, find yours in the NAIC directory of state insurance departments.
- FTC. Report a deceptive checkout fee at ReportFraud.ftc.gov. The FTC collects reports for law enforcement but doesn't resolve individual cases.
- Your card issuer. To get a fee back, contact the merchant first, then dispute the charge with your card issuer. Deadlines apply.
Step-by-step help: How to report fake shipping insurance or an unwanted fee.
Check before you pay
- Find out who offers it. Open the terms linked next to the checkbox and note the company name.
- Look for an insurer and a licensed seller. Then verify the license with your state, using our license lookup guide.
- Read who decides claims. Phrases like “not insurance” or “sole discretion” tell you what happens if you file. More in the 10 red flags checklist.
Featured guides
Shipping protection providers compared
A side-by-side comparison of how shipping protection providers describe their coverage, insurers and claims.
VAMP and delivery chargebacks
For merchants: how Visa's VAMP ratio works, which delivery disputes count, and where opt-in shipping insurance helps and where it doesn't.
How do I protect myself from shipping insurance scams?
Start here if you are a shopper. These guides cover what to check at checkout, what to do after a denied claim and how to get an unwanted fee back.
Red flags of fake shipping insurance
A 10-point checklist for the shipping protection box at checkout, based on NAIC and state regulator warnings.
How to check if a company is licensed
Step-by-step license lookups, plus the questions to ask a shipping protection provider.
Shipping protection vs. shipping insurance
The four kinds of shipping protection, from licensed insurance to merchant guarantees that say they are not insurance.
Shipping protection claim denied?
Identify what you bought, appeal with evidence, and know when regulators or your card issuer can help.
How to report fake shipping insurance
Who to report to, what evidence to gather, and a link to every state insurance department.
What regulators have said about package protection
A dated, sourced roundup of NAIC and state consumer alerts.
What should merchants know about shipping protection fees?
If your store charges a shipping protection fee at checkout, these guides explain how to review it and how to move to licensed coverage.
Is your store selling insurance without a license?
How state law decides whether a checkout fee is insurance, why merchants get named in lawsuits, and how to audit your checkout.
How to switch to licensed shipping insurance
A step-by-step plan for moving from a shipping protection app without leaving past orders or your support team behind.
Which shipping protection lawsuits are pending?
The tracker lists consumer lawsuits with court numbers and current status. Claims in a complaint are allegations unless a court has ruled. A voluntary dismissal ends a case with no ruling on the merits.
Shipping protection lawsuits: 2026 tracker
Consumer lawsuits naming shipping protection providers or fees, with court numbers, current status and rulings so far. Complaint claims are labeled as allegations.
Our editorial standards
Every guide quotes the published terms it covers, links the source and is dated. Lawsuits are described as allegations unless a court has ruled. Providers can request corrections via /pages/contact-insureship.
Disclosure
InsureShip, established in 2009, sells shipping insurance; we publish this resource center. This is general information, not legal advice.
Frequently Asked Questions
What is fake shipping insurance?
As a general topic, it means paying a fee for a promise to cover a lost, damaged or stolen package when that promise isn't backed by licensed insurance. Whether a specific product is insurance is decided by state law and regulators, based on what the product does, not its name.
Is all shipping protection fake insurance?
No. Some shipping protection is backed by a licensed insurer and sold through a licensed producer. Other products are merchant guarantees whose terms say they are not insurance. Read the terms and check who is offering the coverage before you pay. See shipping protection vs. shipping insurance.
Where do I report a shipping insurance problem?
Report licensing questions to your state insurance department (find it in the NAIC directory) and deceptive fees to the FTC and your state attorney general. To recover a fee, contact the merchant first, then your card issuer. Our reporting guide has the details.
Why does InsureShip publish this resource center?
InsureShip sells shipping insurance, so we have an interest in this topic, and we say so. To keep the guides fair, every guide quotes the published terms it covers, links the source and is dated, and providers can request corrections.
Want licensed shipping insurance at your checkout?
Established in 2009, InsureShip is licensed by the California Department of Insurance, license #0G55434, and licensed nationwide. Coverage is underwritten by Navigators, a Hartford company, rated A+ by AM Best (Navigators Insurance Company, as of 2024; source: The Hartford's Navigators fact sheet). It reaches up to $5,000 per shipment for loss, damage and theft, and InsureShip handles the claims.
Talk to InsureShipSources
Last checked October 8, 2026. General information, not legal advice. NAIC: Consumer alert on package protection · Utah Insurance Department: Consumer alert · Oklahoma Insurance Department: Release, Nov. 2023 · Connecticut Insurance Department: Alert, Dec. 2024 · NAIC: State insurance departments · FTC: ReportFraud · The Hartford: Navigators fact sheet (April 2025)