Lost in transit
All four routes pay this out. The carrier's $100 is enough for many low-ticket stores; Shipsurance, Route and declared value each raise the ceiling.
Shopify
Shipping coverage for Shopify stores, priced side by side
Four routes cover a Shopify parcel: the carrier's built-in $100, Shopify's own product underwritten by Shipsurance at $0.89 per $100, a buyer-facing app like Route billed at checkout, or a declared-value line item on the carrier account. They price differently, they cap differently and they cover different failures. This page lays them next to each other with the source for every number.
Shipsurance rates citedCoverage caps shownTheft-after-delivery clarified
Four coverage layers
Every extra dollar past $100 buys against a different failure mode.
Four coverage paths, four different bills
The four routes are not alternatives to each other; they stack. The store pays the carrier's built-in coverage for free, adds one of the extra products on top, and the buyer sometimes sees a checkout charge on top of that.
| Route | Who pays | Cost | Cap |
|---|---|---|---|
| Carrier built-in | Included in the label | Free | $100 per parcel on Ground Advantage, Priority, most UPS/FedEx tiers; $20 on UPS Ground Saver |
| Shopify Shipping Insurance (Shipsurance) | Store, added at label purchase | $0.89 per $100 domestic, $1.29 per $100 international | Up to $5,000 per shipment |
| Grow, Advanced, Plus plans with Shopify Payments | Included with the plan | Free | Up to $200 per eligible shipment automatically |
| Route or similar buyer-facing app | Buyer, at checkout | Percent of order value set inside the app | Set by the app's terms; typically to $10,000 |
| Carrier declared value | Store, on the carrier account | Per-carrier scale in $100 increments | Up to $5,000 on UPS Ground, higher on FedEx Ground and Home Delivery |
A Shipsurance policy is cheaper per dollar of coverage than most carrier declared-value scales, and the claim goes through Shopify's admin rather than through a paper form. The trade is that the payout is subject to a claim window: 24 hours after ship at the earliest and 120 days from the ship date at the latest, per help.shopify.com read on 2026-08-11.
Which product actually covers each failure
Damaged on arrival
Carrier coverage pays when the packaging meets the carrier's own rules — that qualifier is where most claims die. Shipsurance and Route both hold a higher bar for what “proper packaging” means, and both pay damage claims a carrier's own coverage would deny.
Stolen from the porch
Carrier coverage stops at the delivery scan. Shipsurance and Route both cover theft after delivery when the store files inside the claim window and the buyer confirms non-receipt. This is the gap that justifies the extra product for many stores.
Which one to turn on
A store on a Shopify Grow, Advanced or Plus plan with Shopify Payments already has $200 covered per eligible shipment. Everything below that value is done. Between $200 and around $600, Shipsurance at $0.89 per $100 is cheaper than any carrier declared value on the same lane. Above $600, the choice is between Shipsurance up to the $5,000 cap and a buyer-facing app that lets the buyer pay for the coverage instead of the store. Route works best when the store's average order value is high enough that a checkout add-on does not scare buyers away.
Whichever path a store picks, keep photos of the packaged parcel, the shipping label with tracking number and the buyer's order confirmation for every claim: the paperwork bar is where claims usually fail, not the underwriter's willingness to pay.
Where these rules come from
- Shopify Help Center, Shipping insurance for your shipping labels — Shipsurance rates, cap, claim window, plan-included coverage. Read 2026-08-11.
- United States Postal Service Domestic Mail Manual (DMM) 609 — included coverage on Ground Advantage, Priority and Priority Mail Express. Read 2026-08-11.
- United Parcel Service tariff and terms of service — $100 base liability, Ground Saver exception at $20, declared-value scale in $100 increments. Read 2026-08-11.
Common questions
Does Shopify itself sell shipping insurance?
Yes, through Shipsurance, on labels bought from the admin. The rate is $0.89 per $100 of coverage domestic and $1.29 per $100 international, up to a $5,000 ceiling, per help.shopify.com read on 2026-08-11.
Do Grow, Advanced or Plus plans include any coverage?
Stores on those plans that use Shopify Payments get up to $200 of coverage on each eligible shipment at no extra cost, per the same help page. Above that value, coverage has to be added at label purchase.
What is the difference between Shopify's coverage and Route?
Both are underwritten by a licensed carrier and both pay out on loss, damage or theft. Shopify's is priced by the store as a per-label cost; Route is billed to the buyer as a checkout add-on and processed inside its own app. The claim experience and the reserved recourse when a claim is denied are what actually differ.
Is the carrier's built-in coverage enough?
Ground Advantage, Priority Mail, Priority Mail Express and most UPS and FedEx services carry $100 of coverage on the base label. That covers a small share of Shopify order values. Everything above it either goes on Shipsurance, Route, a third-party app or the carrier's own declared-value add-on.
Which coverage pays for a stolen porch parcel?
Not the carrier's basic coverage — the carrier's liability ends at the delivery scan. Shipsurance's terms include theft after delivery when the shipment is filed within the claim window; Route and most protection apps also cover it. That is the specific gap the extra product is buying.