Shopify shipping insurance that protects orders and adds revenue.
Offer optional shipping insurance at checkout for eligible lost, stolen, damaged and non-delivered orders. Customers get real coverage and a clear claims path. You get fewer refund arguments and a potential new revenue stream.
- Customized Shopify setup
- Insurance-based protection
- Defined claims process
Covers eligible loss, theft, damage or non-delivery in transit. Terms apply.
If something goes wrong
- Package marked delivered
- Claim submitted with details
- Reviewed under policy terms
Illustrative checkout. Your offer is customized to your store.
The short answer
What is Shopify shipping insurance?
Shopify shipping insurance is optional coverage a customer can add at checkout to protect an eligible order against loss, theft, damage or non-delivery in transit. InsureShip provides it for Shopify stores, so covered problems follow a defined claims process and merchants can earn revenue above the wholesale cost, subject to program terms.
It is different from absorbing every refund yourself, and different from vague “package protection” add-ons. See how the structures compare, explore our Shopify Package Protection Guide, or read the complete merchant guide.
Protect eligible orders
Coverage may apply to loss, theft, damage and non-delivery under applicable terms.
Simplify claims
Give customers and support teams a defined path when a protected delivery goes wrong.
Increase confidence
Address delivery anxiety before it becomes a reason to abandon checkout.
Create new revenue
Add a potential profit stream to protected orders instead of only absorbing shipping risk.
See the customer experience
Shipping protection that fits the way Shopify customers buy.
InsureShip adds an optional insurance offer to the purchase journey. Customers can protect eligible orders, your fulfillment operation continues as usual, and covered issues follow an established claims process.
- Designed for Shopify and direct-to-consumer brands
- Customized to fit your store and checkout experience
- No more improvising a refund decision for every delivery complaint
- Supports eligible shipments valued up to $5,000, subject to terms
From setup to claim
How Shopify shipping insurance works in four steps
InsureShip works alongside your store, fulfillment provider and existing shipping workflow.
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Customize the offer
InsureShip works with your team to configure the protection experience for your Shopify store.
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Customer opts in
The buyer chooses optional insurance during the purchase journey for an eligible order.
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Fulfill normally
Your warehouse, 3PL and carriers continue processing the shipment through the usual workflow.
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Use the claims path
If a covered loss occurs, the required details and documentation are submitted through the defined process.
Merchant case study
Measured across more than 100,000 transactions
In an InsureShip merchant test, checkout insurance worked as a customer trust signal and a meaningful source of incremental revenue.
“Buyers want peace of mind. With InsureShip, we gave them real coverage, including porch-pirate protection, and saw an immediate lift in conversions and profits.”
Case-study results are merchant-specific and are not a guarantee of future performance. Results vary by traffic, offer, pricing, product mix, implementation and customer behavior. WISMO = “where is my order?”
Merchant economics
How Shopify stores can make money with shipping insurance.
Instead of treating every shipping problem as a pure cost center, qualifying merchants can offer customers optional protection and retain revenue above the wholesale insurance cost.
Illustrative example only. The spread is before any applicable costs, adjustments, taxes or program terms. Actual pricing and economics vary. Read the Shopify shipping insurance cost guide.
Estimate your monthly revenue
Adjust the example inputs to model your store. Confirm your actual rates during onboarding.
Estimates are illustrative, not a forecast or guarantee. The case study above reported a 70% opt-in rate for one merchant; yours will vary. Excludes applicable costs, adjustments and taxes.
Know what you are offering
Shipping insurance vs. generic package protection
The label alone does not determine how a program is structured. Merchants should understand the coverage, terms, claims process and parties involved.
| Category | Generic package protection | InsureShip shipping insurance |
|---|---|---|
| Program structure | May be merchant-funded or structured in different ways. | Insurance-based program with applicable coverage terms and conditions. |
| Customer communication | Coverage and exclusions may be unclear or vary by provider. | Protection is presented with defined program and claims information. |
| Claims handling | May depend on manual support decisions or internal store policies. | Covered claims follow an established submission and review process. |
| Merchant impact | The merchant may continue absorbing refunds and replacements. | Can help protect margins while creating a potential revenue opportunity. |
| Best fit | Merchants comfortable managing more of the delivery risk internally. | Shopify brands seeking a more structured shipping insurance approach. |
Related: Shopify package protection vs. carrier insurance · USPS vs. UPS vs. FedEx shipping insurance
Compliance matters
Do not treat insurance terminology casually.
Charging a customer for protection against loss, theft, damage or non-delivery can carry insurance and consumer-protection implications. Calling a program “package protection” does not, by itself, determine how regulators will view its structure.
InsureShip is positioned as an insurance-based solution for ecommerce merchants and works with licensed insurance entities and carrier relationships to support the program.
Protect the post-purchase experience
Shipping problems rarely stay inside the shipping department.
A lost or stolen package can affect customer satisfaction, support costs, reviews, retention, chargebacks and margin. A structured program helps the business respond consistently instead of negotiating every incident from scratch.
- Give customers added confidence before purchase
- Reduce avoidable “Where is my order?” friction
- Protect against repeated merchant-funded replacements
- Create a clearer handoff between customer service and claims
Best-fit merchants
Built for Shopify brands that ship physical products
InsureShip is especially relevant where delivery issues are frequent, expensive or damaging to customer trust.
Direct-to-consumer brands
You own the customer relationship and the post-purchase experience.
Subscription and repeat-order stores
Recurring shipments multiply delivery exposure over time.
Beauty, wellness and supplements
Repeat buyers who expect a smooth unboxing every time.
Apparel, accessories and lifestyle
High order volume and customers who notice every delay.
Higher-value or theft-prone items
Where a single lost package costs the most to replace.
High delivery-support volume
Fewer delivery disputes to negotiate case by case.
Shopify shipping insurance resource center
Answers for Shopify merchants before and after checkout.
Focused guides on setup, pricing, claims, package protection, carrier coverage and the delivery problems Shopify merchants deal with most.
A practical overview of Shopify shipping insurance, merchant options and how third-party protection can fit into the customer journey.
Read the merchant guide ImplementationHow to Add Shipping Insurance to ShopifyLearn the key decisions involved in adding an optional shipping insurance offer to a Shopify store.
See the setup guide Core guideShopify Shipping Protection: Merchant GuideUnderstand the role of package protection, the customer experience and the questions to ask before choosing a program.
Explore shipping protectionShopify Merchant Knowledge Center
Explore the complete Shopify Shipping Insurance Resource Center
Browse our organized library of guides covering setup, claims, lost and stolen packages, carrier coverage, package protection, costs, apps and provider comparisons.
Explore the Resource CenterShopify shipping insurance FAQs
Answers merchants need before implementation
Direct answers about coverage, customer choice, claims, revenue and setup.
What is Shopify shipping insurance?
Shopify shipping insurance is optional coverage that may protect eligible ecommerce shipments against covered events such as loss, theft, damage or non-delivery, subject to the applicable policy terms. Read the complete merchant guide.
Can Shopify merchants offer shipping insurance during checkout?
Yes. A Shopify merchant can integrate an insurance offer into the customer purchase journey through a provider such as InsureShip, subject to Shopify capabilities and the merchant's implementation. See how package protection works at checkout.
How much does Shopify shipping insurance cost?
Pricing depends on the approved program structure and the value of the shipment. As an illustrative example, wholesale protection might cost $1.00 per $200 of insured value while the customer is charged $4.95 at checkout. Actual rates and economics vary, so confirm them during onboarding. See the shipping insurance cost guide.
What does InsureShip cover?
Eligible coverage may include lost, stolen, damaged or non-delivered shipments. Exact coverage, exclusions, limits, documentation and timing requirements depend on the applicable policy and program terms.
Does it include porch-pirate theft?
Eligible theft after delivery may be covered when it falls within the applicable policy terms and the required claim documentation is provided. Learn more about protecting orders from package theft.
Is shipping protection the same as shipping insurance?
Not always. “Package protection” is a broad marketing term and can describe different program structures. Shipping insurance generally refers to coverage governed by specific policy terms, exclusions, limits and a defined claims process.
How is this different from carrier insurance?
Carrier-provided coverage is governed by the carrier's own terms, limits and claims rules. A third-party program such as InsureShip is offered to the customer at checkout under its own policy terms and claims process. Compare the details in Shopify package protection vs. carrier insurance.
Do customers have to buy shipping insurance?
No. The offer is optional. The customer chooses whether to protect an eligible order during the purchase journey.
Do I need to change my fulfillment workflow?
In most cases no. Your warehouse, 3PL and carriers continue processing shipments through the usual workflow, while InsureShip customizes the protection experience for your Shopify store.
How do Shopify shipping insurance claims work?
For a protected order, the customer or merchant submits the requested order information, tracking details, proof of loss and supporting documents. The claim is then reviewed under the applicable coverage terms. See how to file a Shopify shipping insurance claim.
Can shipping insurance help reduce chargebacks?
A clear claims process can resolve some delivery disputes before they become chargebacks, but it cannot prevent every dispute and no specific reduction is guaranteed.
Can a Shopify store earn revenue from shipping insurance?
Yes. Depending on the approved program structure, the merchant may retain revenue above the wholesale cost of protection. Actual pricing, participation and economics vary. See how package protection can generate revenue.
How long does setup take?
Setup can be completed quickly for many stores, but timing depends on the Shopify configuration, checkout environment, customization, approval requirements and testing. Use the setup checklist to prepare.
What shipment values can be protected?
The current program is presented as supporting eligible shipments up to $5,000. Coverage remains subject to applicable terms, product eligibility, exclusions and limits.
Is InsureShip appropriate for international orders?
International availability depends on the merchant, origin, destination, carrier, product and applicable program terms. Confirm the intended shipping lanes during onboarding.
Who is the best fit for InsureShip?
InsureShip is designed for Shopify merchants shipping physical products who want a more structured approach to delivery risk, claims, customer confidence and order economics.
Start protecting orders
Set up the InsureShip Shopify app today.
Give customers the option to protect eligible orders, create a clearer claims process and turn shipping protection into a potential new revenue stream.
- Customized Shopify setup
- Quick implementation
- Program and claims guidance
InsureShip coverage is subject to applicable policy terms, exclusions, limits and eligibility requirements. Examples, pricing and case-study results on this page are illustrative and are not guarantees. Merchants should review program documents with qualified legal or insurance professionals.