Shopify Shipping Protection Apps Compared: Who Pays the Claim?
We reviewed every shipping protection app we could find on the Shopify App Store, 70 apps classified, and sorted them by the one question that matters when a package goes missing: who actually pays the claim.
See the full comparison Talk to InsureShipReviewed by Kyle G., Compliance Auditor · Updated October 2026 · General information, not legal advice.
Key takeaways
- 32 of 70 apps describe a merchant-funded model: the store keeps the fee and pays or decides claims from its own money.
- 19 of those 32 use words like “insurance”, “premium” or “insured” somewhere in their listing, docs or policies. None of the 32 names an insurer for its standard program on the pages we checked.
- 21 of the 32 merchant-funded apps described no fraud or abuse controls on the pages we checked. Every false claim the store approves comes out of its margin.
- 10 apps present their coverage as backed by a named insurer, agency or policy. A few others name an insurer only for an optional program or only in their terms, as noted in the tables. Ask any provider for these details in writing.
- InsureShip is a licensed insurance agency. Coverage is underwritten by Navigators (The Hartford), rated A+ by AM Best (Navigators Insurance Company, as of 2024; fact sheet). Your store does not pay the claims.
What are the four kinds of shipping protection apps?
Every app below fits one of four models, based on the app's own listing, terms, FAQ and help pages.
10
Insurance-backed
The app names a licensed insurer, insurance agency or policy behind the coverage. An insurance company carries the risk.
18
Provider-paid guarantee
The app company says it (or a partner) handles and pays approved claims, and names no insurer for its standard program. Ask the provider who funds claims.
32
Merchant-funded tool
The app is software. Your store sets the fee, keeps it, and pays or decides the claims. Your store carries the risk.
10
Not clearly disclosed
We could not confirm who pays claims, or how any insurer they mention applies to the shopper's purchase, from the pages available to us.
What happens when your store is the one paying claims?
A merchant-funded app is pitched as found money: shoppers pay a fee, the store keeps it, and claims are “rare”. The listings say so in their own words, in the table below. In practice, your store takes on the job an insurance company normally does. Many of these apps say so plainly in their own terms.
Every claim is paid from your margin
With no insurer behind the fee, an approved claim means a refund or replacement your store pays for. A bad month of losses, a carrier problem or a holiday theft spike lands on you, not on an insurer.
You become the fraud department
False “not received” claims and repeat claimants are paid unless your team catches them. 21 of the 32 merchant-funded apps described no fraud or abuse controls on the pages we checked, so screening is left to you.
You decide who gets paid
Most merchant-funded apps leave approval to the store. Every denial is your decision, made with your customer, and disputes can still end up as chargebacks.
Check how your checkout describes the fee
19 of the 32 merchant-funded apps use words like “insurance”, “premium” or “insured” somewhere in their listing, docs or policies. If your checkout describes a store-funded fee as insurance, ask a lawyer whether that wording fits your setup.
Full comparison: 70 Shopify shipping protection apps
Apps are grouped by model and sorted by Shopify review count. Quotes are verbatim from each app's own listing, terms, FAQ or help pages, as of October 2026. Links go to the page we quoted. Tap a group to expand it.
Merchant-funded tools (32 apps): your store pays and decides claims
| App | Reviews | Who pays claims | Who decides claims | Says it is not an insurer | In their own words |
|---|---|---|---|---|---|
| Redo Also offers an optional third-party insured program. | 800 | The store | The store | “Redo Tech does not provide any actual package-protection coverage; you are solely responsible for self-insuring or obtaining third-party coverage” (source) | “Generous revenue share or full revenue options” (source) |
| Navidium Shipping Protection | 396 | The store | The store | “We are not a shipping insurance company, and don't underwrite claims.” (source) | “No revenue share — you keep 100% of collected protection fees.” (source) |
| Captain Shipping Protection | 310 | The store | The store | “We are not an insurance firm and do NOT underwrite plans” (source) | “Shipping protection fees paid by the customer are retained entirely by the merchant” (source) |
| Simply Shipping Protection | 131 | The store | The store | “Is this insurance? No, and the distinction matters. There is no underwriter and no policy.” (source) | “Let customers protect their orders while you keep the full fee and manage claims your way.” (source) |
| Sam Shipping Protection Suite | 107 | The store | The store | “Sam is not an insurance provider — it's the tooling to run protection in-house.” (source) | “Keep 100% of revenue — no middlemen, no revenue sharing” (source) |
| Shipping Protection —Shipcheck | 104 | The store | The store | “Shipcheck is not an insurance company, insurance broker, or warranty provider, and does not sell or offer insurance or warranty products.” (source) | “Keep 100% of protection revenue” (source) |
| Insureful Shipping Protection | 77 | The store | The store | “No, we are not an insurance company.” (source) | “Zero revenue sharing, it's all yours” (source) |
| Easy Shipping Protection | 65 | The store | The store | “Easy Shipping Protection is a merchant-side configuration tool, not an insurance provider.” (source) | “100% of the shipping protection revenue goes directly to the merchant’s account” (source) |
| ShipProtect ShippingProtection | 38 | The store | The store | “It is not an insurer, insurance broker, warranty provider or claims administrator, and does not guarantee, underwrite or pay claims.” (source) | “retain 100% of the collected premiums” (source) |
| SHIPAID ‑ Shipping Guarantee | 25 | The store | The store | “No, SHIPAID is not insurance.” (source) | “the brand from which you ordered the product will replace the product free of charge” (source) |
| ShipGuard: Shipping Protection | 21 | The store (our reading; not stated expressly) | The store (implied by its merchant claims tools) | — | “helps merchants secure shipments with own in-house customizable order protection against loss, damage, or theft” (source) |
| VOL Shipping Protection Upsell | 18 | The store (our reading; not stated expressly) | The store (implied by its merchant claims tools) | — | “Create your own package protection program with fixed, dynamic, or percentage-based pricing.” (source) |
| OrderProtect | 11 | The store | The store | “(We are not an Insurance Company, and do NOT Underwrite plans.)” (source) | “YOU keep 100% of the revenue generated from offering order protection” (source) |
| OrderArmor Shipping Protection | 10 | The store | The store | “(We are not an insurance company and do not underwrite plans.)” (source) | “100% of the fees collected from customers for shipping protection go directly to you, the merchant.” (source) |
| Blockify: Shipping Protection | 7 | The store | The store | “Blockify is the tooling, not an insurance provider.” (source) | “Keep 100% of every protection fee and increase your conversion rate” (source) |
| Protectify Shipping Protection | 7 | The store | The store | “Protectify is not an insurance provider. It is the widget and dashboard behind your protection program.” (source) | “You keep 100% of what customers pay for shipping protection.” (source) |
| Shipping Protection — Assurify | 6 | The store (our reading; not stated expressly) | Not stated | — | “Boost profits by keeping the premium charged at checkout all to yourself.” (source) |
| InsureParcel Shipping Protect | 3 | The store | The store | “(We’re not an insurance company and do not underwrite plans.)” (source) | “You Keep All Fees: Claims are rare; cover when needed and keep the margin” (source) |
| Shield Shipping Protection | 2 | The store | The store | “No - Shield is not an insurance company.” (source) | “Shield charges 15% of shipping protection revenue per month - you keep 85% of all fees collected!” (source) |
| Klify ‑ Shipping Protection | 1 | The store (our reading; not stated expressly) | The store | — | “Set protection policies and fees, keep collected protection fees” (source) |
| InsureBooster Order Protection | 1 | The store | The store | — | “No third-party insurer, no commission, no revenue share. The fees go straight to your store.” (source) |
| Shield Insurance | 1 | The store | The store | “We do not sell insurance polices” (source) | “Shield Prime takes only 10% of the up-sell: you keep 90% as pure profit” (source) |
| OrderGuard – Protect & Claims | 1 | The store | The store | — | “Fees are collected at checkout and managed by the merchant.” (source) |
| Super Shipping Protection | 0 | The store (our reading; not stated expressly) | The store | — | “Keep all protection fees and add profits when claims are low” (source) |
| Protectly Shipping Protection | 0 | The store | The store per its FAQ; its terms say “All claims are subject to review by Protectly” | “PROTECTLY IS NOT AN INSURANCE COMPANY AND IS NOT OFFERING INSURANCE TO ANY MERCHANT, CUSTOMER OF ANY MERCHANT” (source) | “Protectly charges a flat monthly fee. You keep 100% of every fee your customers pay.” (source) |
| ShipPanda Shipping Protection | 0 | The store (our reading; not stated expressly) | Not stated | “Note: ShipPanda is not an insurance provider.” (source) | “Keep 100% of fees with no third-party insurance providers” (source) |
| ShieldCart Shipping Protection | 0 | The store (our reading; not stated expressly) | The store | — | “Keep 100% of collected protection fees as direct store revenue” (source) |
| Fenix Shipping Protection | 0 | The store | The store | — | “Fenix allows you to charge for shipping protection and keep 100% of the revenue.” (source) |
| OneAssure | 0 | The store (our reading; not stated expressly) | The store | “Note: LateShipment.com is not an insurance company and does not underwrite” (source) | “Set your own protection fees and keep 100% of the fees collected.” (source) |
| ShipGuard | 0 | The store | The store | — | “you keep 100% of every premium collected” (source) |
| PuffDots Shipping Protection | 0 | The store (our reading; not stated expressly) | The store | — | “Buyers opt in with one tap; you earn on every protected order.” (source) |
| ShipSure | 0 | The store | The store | — | “helping customers feel secure while you earn extra revenue on every order” (source) |
Provider-paid guarantees (18 apps): no insurer named
| App | Reviews | Who pays claims | Insurer named | In their own words |
|---|---|---|---|---|
| Xcotton Post Purchase Guard | 760 | The app provider | Says “Backed by a trusted insurance brand”; none named | “we will compensate you with either a replacement or a refund, which will not exceed the original purchase value of the items” (source) |
| ShipInsure Shipping Protection | 66 | The app provider | None named | “Shipping Protection is not insurance sold to you by ShipInsure.” (source) |
| SavedBy Package Protection | 55 | The app provider | None named | “the money comes from SavedBy's wallet- not yours.” (source) |
| Guide Protection + Returns | 55 | The app provider | None named | “the Guide Protection does not constitute insurance.” (source) |
| SureBright Warranty & Shipping | 54 | The app provider | Refers to “our underwriters”; none named | “SureBright and our underwriters assume all financial risks associated with warranty coverage and claims processing.” (source) |
| Onward Checkout+ | 24 | The app provider | None named for the standard program; also offers an optional third-party insured program (Shipsurance) | “IS NOT AND SHALL NOT CONSTITUTE INSURANCE OF ANY KIND WHATSOEVER” (source) |
| Corso | 20 | The app provider | None named | “IS NOT AND SHALL NOT CONSTITUTE INSURANCE OF ANY KIND WHATSOEVER” (source) |
| CAREBOX Package Protection | 8 | CAREBOX or the seller (per listing) | None named | “customers will receive a refund from CAREBOX or sellers.” (source) |
| Protect for Shipments & Causes | 7 | The app provider | None named | “Protect is not insurance.” (source) |
| Gooval‑Shipping Secure Service | 3 | The app provider | None named | “Gwofy HK Limited is not an insurance company or an insurance intermediary.” (source) |
| SurePath Protection | 2 | The app provider | None named | “SurePath covers the replacement — your margin stays intact” (source) |
| Get Plus ‑ AI Commerce OS | 2 | The app provider | Says “licensed insurance carriers and brokers”; none named | “Protection benefits provided through licensed insurance carriers and brokers.” (source) |
| Swipe Protect Orders & Revenue | 1 | The app provider | None named | “Merchant will never be required to pay money into the Program” (source) |
| Trustway: Package Protection | 1 | The app provider | None named | “Trustway will refund your product cost upon claim submission.” (source) |
| Recura Shipping Protection | 1 | The app provider | None named | “Postpo assumes liability for the following” (source) |
| AfterCart Shipping Protection | 0 | The app provider | None named | “These shipping protection services are not insurance of any kind.” (source) |
| Solace Shipping Protection | 0 | The app provider | None named | “is not and shall not constitute insurance of any kind whatsoever” (source) |
| Astrixify Premium Care | 0 | The app provider | None named | “Once there, customers can submit a claim and we'll handle everything.” (source) |
Insurance-backed (10 apps): an insurer, agency or policy is named
| App | Reviews | Insurer or licensing they name |
|---|---|---|
| Route ‑ Protection & Tracking | 376 | Route says its licensed producer is Route Insurance Solutions, LLC (source); its policy summary says coverage is a Marine Open Cargo Policy “secured via Artex Risk Solutions through Seg Insurance Ltd.” (source). Route states it “holds Department of Insurance authorization in all 50 states.” (source) |
| Seel Worry‑Free Purchase | 296 | “Seel Insurance Services, Inc. (NPN: 19817095), a licensed surplus lines insurance broker, acts as the producer and administrator of the Worry-Free Purchase program.” (source) |
| InsureShield & CommerceShield | 46 | “Insurance coverage is underwritten by an authorized insurance company and issued through licensed insurance producers, including UPS Capital Insurance Agency, Inc.” (source) |
| ShipTection | 38 | “ShipTection is powered by InsureShip and underwritten by The Navigators Group and The Hartford” (source) (ShipTection’s coverage is placed through InsureShip.) |
| Extend Shopper Operations | 21 | “issued to Extend by Overtime Insurance Solutions Corporation and produced through Extend Insurance Agency, Inc.” (source) |
| Parcel Protect | 3 | “Insurance products are provided by National Transport Insurance, a joint venture of the insurers” (source) |
| InsureShip | 2 | “Online Shipping Insurance Services (DBA InsureShip) is an insurance agency that specializes in Shipping Insurance and is underwritten by Navigators and The Hartford.” (source) |
| Ship‑Safely: Parcel Protection | 1 | “Ship-Safely is a trading name of Nano Insurance Limited, a licensed insurer authorised to provide Online Marine Transit Insurance” (source) |
| Alameen Protect | 0 | “Coverage is underwritten by Pakistan General Insurance (PGI).” (source) |
| U‑PIC Shipping Insurance | 0 | “our partnership with The Continental Insurance Company reinforces our ability to offer substantial savings directly to you.” (source) |
Not clearly disclosed (10 apps)
| App | Reviews | What we found |
|---|---|---|
| EcoCart Green Protection | 98 | “we partner with ShipInsure to offer the ability for merchants to customize the claim reasons shoppers can file with” (source) |
| Frate Returns and Protection | 7 | Says claims run through partner ShipInsure; does not say which company pays. “Our partnership with ShipInsure is a perfect match” (source) |
| LABL Guarantee | 2 | Terms name LABL PROTECT Insurance Services (agent) and Underwriters at Vouch, but we could not confirm how that applies to the shopper checkout product. “The insurance agent – LABL PROTECT Insurance Services (“INS”): The insurance company – Underwriters at Vouch” (source) |
| Norton Shopping Guarantee | 1 | Package claims are paid by EasyPost per Norton’s terms; no insurer named for package protection. “Any covered loss will be provided by EasyPost directly to the insured within thirty (30) days of the claim submission” (source) |
| UD Shipping Protection | 0 | “through professional insurance support and streamlined claims” (source) |
| InsureShip Automated (not affiliated with InsureShip.com) | 0 | “applying a shipping insurance fee according to a predefined percentage set in created product's metafield” (source) |
| Total Package Protection | 0 | No insurer or claims funding described on the pages we reviewed. |
| OrderShippingProtect | 0 | No insurer or claims funding described on the pages we reviewed. |
| Shieldkart | 0 | “Shieldkart will either reimburse the merchant or handle payment per our arrangement” (source) |
| AddiFee | 0 | No insurer or claims funding described on the pages we reviewed. |
Review counts are from each Shopify App Store listing in October 2026. Two further apps state that their coverage is provided through InsureShip; InsureShip is confirming those relationships, so they are not listed yet. If you represent an app on this page and something has changed, contact us and we will review it.
How do you check the app on your store right now?
Ask your provider these questions in writing. An insurance-backed program should be able to answer every one.
- Which insurance company pays the claim? Get the insurer's legal name, not a brand name.
- Who is the licensed agency or producer? Ask for its license number and check it with your state's department of insurance or the NAIC Consumer Insurance Search.
- Can I see the policy or certificate? It should say who is insured and what is covered.
- Who decides a claim? If the answer is “you do”, your store is the claims department.
- Whose money pays an approved claim? If the answer is “the fees you collected”, your store is carrying the risk.
- Who handles fraud? Ask what happens with repeat claimants and false “not received” claims, and who absorbs the loss.
What insurance regulators tell shoppers
State regulators have issued general consumer alerts about package protection sold as insurance by unlicensed sellers. The alerts name no company and do not refer to any app on this page. Many of the merchant-funded apps listed here state in their own terms that they are not insurers and do not sell insurance.
“Legitimate shipping insurance providers will be licensed companies or producers.”— Oklahoma Insurance Department consumer alert, Nov. 28, 2023 (source)
“Legitimate shipping coverage providers will be licensed as insurance companies or insurance agents with the Utah Insurance Department.”— Utah Insurance Department consumer alert, Mar. 20, 2024 (source)
“carefully review the shipping protection options and who is offering them”— Connecticut Insurance Department consumer alert, Dec. 9, 2024 (source)
How is InsureShip different?
Insurance-backed coverage
Underwritten by Navigators, a Hartford company, rated A+ by AM Best (Navigators Insurance Company, as of 2024; fact sheet).
Licensed
InsureShip is licensed by the California Department of Insurance (license #0G55434) and licensed in all 50 states. Established in 2009.
Claims off your desk
Shoppers file claims with InsureShip at our claims page. Your store is not the one deciding or paying them. Coverage is available up to $5,000 per shipment, subject to terms.
Your store’s traffic has value beyond product sales. InsureShip pays qualifying merchants for advertising space that connects shoppers with shipping insurance. Interested in seeing what a partnership could look like for your store?
How do you switch from a merchant-funded app?
- Save your current terms. Note your fee, your claims policy and any open claims.
- Talk to InsureShip. We enable the integration for your store (Shopify, WooCommerce, Checkout Champ and more).
- Turn off the old widget so shoppers never see two protection offers.
- Finish open claims under your old terms, then route new claims to InsureShip.
Frequently Asked Questions
Is shipping protection the same as shipping insurance?
Not always. Some apps place a policy with a licensed insurer, some say the app company pays claims itself, and some are software that lets your store collect a fee and pay claims from its own money. Whether a product counts as insurance is decided by state law and regulators, based on what it does, not what it is called.
What does a merchant-funded shipping protection app do?
It adds a protection fee at checkout and gives your store tools to collect that fee and handle claims. The app's own listing or terms describe a model where the store keeps the fees and pays or decides the claims. For the standard program, none of these apps names an insurer behind the promise to your shopper.
How many Shopify shipping protection apps name an insurer?
Of the 70 apps we classified in October 2026, 10 present their coverage as backed by a named insurer, insurance agency or policy. 32 describe a model where the merchant keeps the fee and pays or decides claims.
Who pays for fraudulent claims with a merchant-funded app?
Your store does. When the store is the one paying claims, every false 'not received' claim or repeat claimant is paid from your margin unless you catch it. 21 of the 32 merchant-funded apps we reviewed described no fraud or abuse controls on the pages we checked.
How do I check whether my current app is backed by insurance?
Ask the provider for the name of the insurance company, the policy or certificate, and the license number of the agency that sells it, then check that license with your state's department of insurance or the NAIC Consumer Insurance Search. If no insurer is named, ask in writing who pays a claim if your store does not.
Who backs InsureShip coverage?
InsureShip is a licensed insurance agency (California DOI license #0G55434), licensed in all 50 states and established in 2009. Coverage is underwritten by Navigators, a Hartford company, rated A+ by AM Best (Navigators Insurance Company, as of 2024). Claims are filed with InsureShip, not with your support team.
Take claims off your store's books
Give shoppers shipping insurance backed by Navigators (The Hartford), rated A+ by AM Best, and let InsureShip handle the claims.
Talk to InsureShipSources and method
Last checked October 9–10, 2026. We searched the Shopify App Store for shipping protection, shipping insurance, package protection, order protection and delivery guarantee apps, then reviewed each app's listing and, where available, the developer's terms, FAQ and help pages. Every quote above was checked word for word against the page it links to. InsureShip is one of the 10 insurance-backed apps listed, and ShipTection uses InsureShip's program. Classification reflects what each company publishes about itself; it is not a finding about whether any company complies with the law. General information, not legal advice. Regulator alerts: Oklahoma Insurance Department · Utah Insurance Department · Connecticut Insurance Department · Carrier rating: Navigators fact sheet (The Hartford).