No, FedEx packages are not insured by default; they carry a standard liability limit of $100 unless you pay for additional declared value coverage.
Shipping a package brings a mix of relief and worry. You handed it off, but will it arrive safely? Many shippers assume a big carrier protects every box automatically. That assumption can cost you money.
FedEx operates differently than traditional insurance providers. Understanding these rules protects your wallet if a shipment goes missing or arrives damaged. You need to know exactly what “declared value” means and how it differs from actual insurance.
FedEx Declared Value vs. Third-Party Insurance
FedEx explicitly states they do not provide insurance. This distinction matters. When you ship with them, you rely on “declared value.” This represents the carrier’s maximum liability for that specific package.
Insurance covers a loss based on the policy terms, often covering events outside the carrier’s control. Declared value simply raises the ceiling on what FedEx might pay you if they make a mistake. If you do not declare a higher value, FedEx limits their liability to $100. This applies to lost, damaged, or delayed shipments.
You cannot recover more than the declared value, even if the item inside costs ten times that amount. Proving the value falls on you. You must submit receipts or invoices during a claim.
The Automatic $100 Limit
Every shipment comes with standard liability coverage up to $100 at no extra cost. If you ship a $50 book and FedEx loses it, you file a claim, show the receipt, and likely get your $50 back. If you ship a $1,000 laptop without declaring a higher value, you still only get $100.
Shippers often overlook this cap. They simply drop the box at a counter and walk away. That negligence leaves thousands of dollars at risk every day.
Are All FedEx Packages Insured? | Common Myths
The short answer remains no. The question “are all FedEx packages insured?” often stems from a misunderstanding of how shipping contracts work. Consumers see a high shipping fee and assume it includes full protection.
Reality checks regarding FedEx coverage:
- Standard Ground: Only covers up to $100 liability.
- Express Services: Only covers up to $100 liability.
- Freight: Liability limits vary by weight and class, typically starting at a low per-pound rate.
You must take action to get more protection. You typically enter a value in the “Declared Value” field when creating a label. This tells FedEx you want them to accept higher liability.
Costs For Declaring Higher Value
Raising the liability limit costs money. FedEx charges a fee for every $100 of value you declare over the first $100. These fees add up, but they cost far less than replacing a lost shipment.
The table below breaks down the typical costs and rules associated with declaring value. This data helps you budget for high-value shipments.
| Declared Value Range | Additional Fee (Estimate) | Requirement |
|---|---|---|
| $0.00 – $100.00 | $0.00 (Included) | None |
| $100.01 – $300.00 | ~$4.00 minimum charge | None |
| $300.01 – $499.99 | ~$1.40 per $100 declared | None |
| $500.00 – $50,000 | ~$1.40 per $100 declared | Direct Signature Required |
| Over $50,000 | Not Available (Standard) | Overnight Service Only |
| Jewelry / Art | Standard Rates | Max limit $1,000 |
| Stocks / Bonds | Standard Rates | Max limit $100 |
FedEx Package Insurance Coverage And Liability Rules
While we established that true insurance isn’t the standard, the liability rules—often called FedEx package insurance coverage and liability rules by customers—dictate your payout. FedEx enforces strict caps on specific items regardless of what value you declare.
Items with “limited liability” include:
- Artwork and Antiques: Capped at $1,000 maximum declared value.
- Jewelry and Furs: Capped at $1,000.
- Glassware: Often denied if packing standards aren’t met perfectly.
- Precious Metals: Capped at $1,000.
If you ship a $10,000 diamond ring and declare $10,000, FedEx will likely reject a claim above $1,000 because of these category limits. You need third-party cargo insurance for these items.
Direct Signature Requirements
FedEx protects itself when you declare a high value. If you declare a value of $500 or more, FedEx requires a Direct Signature. The driver cannot leave the package at the door.
Someone at the address must sign for it. If no one is home, FedEx reattempts delivery later. This rule prevents “porch piracy” claims. If you waive the signature requirement (if allowed), you effectively waive your right to file a claim for a lost package.
When To Buy Third-Party Insurance
Since the answer to “are all FedEx packages insured?” is no, and declared value has gaps, third-party insurance often makes sense. Dedicated shipping insurance companies offer broader protection.
Benefits of third-party coverage:
- Higher Limits: Coverage often exceeds FedEx’s $50,000 cap.
- Porch Piracy: Some policies cover theft after delivery.
- Fewer Exclusions: Better coverage for jewelry, electronics, and artwork.
- Easier Claims: Insurance companies often pay faster than carriers.
High-volume shippers can integrate third-party insurance directly into their shipping software. Occasional shippers can buy single-trip coverage.
Packing Standards Affect Your Claim
FedEx can deny your claim even if you paid for declared value. The most common reason for denial is “insufficient packaging.”
You must follow the FedEx General Packaging Guidelines strictly. If a box arrives crushed but showed no external damage, FedEx may argue you used a weak box or insufficient cushioning.
Key packing rules:
- Use a new, sturdy corrugated box.
- Use 2-3 inches of cushioning (bubble wrap, peanuts) on all sides.
- Use the “H-tape” method to seal all seams.
- Remove old labels and barcodes.
FedEx offers a “packing test.” If your packaging fails their lab test after a claim, they pay nothing. For expensive items, consider having a FedEx Office location pack the item for you. This creates a “Packed and Shipped Pledge” that shifts liability firmly to them.
The Claims Process Explained
You must act fast when things go wrong. FedEx enforces strict deadlines for filing claims. Missing a deadline by one day results in an automatic denial.
The shipper usually files the claim, not the receiver. The contract exists between FedEx and the person who paid for the label. If you bought an item online, contact the seller. They file the claim and refund you; FedEx pays them.
Evidence You Need
Gather your documents before logging into the FedEx portal. You need proof of value and proof of damage.
- Photographs: Pictures of the damaged item, the internal cushioning, and the external box (all six sides).
- Proof of Value: A recent invoice, receipt, or appraisal.
- Serial Numbers: For electronics or serialized goods.
- Repair Estimate: If the item is repairable, get a quote. FedEx often pays for repairs rather than replacement.
Do not throw away the packaging until the claim is resolved. FedEx may inspect the box. Discarding the box destroys your evidence.
Deadlines For Filing Claims
Time is your enemy here. Different service levels have different windows for reporting issues. Review the table below to ensure you never miss a cutoff.
| Claim Type | Service Level | Deadline To File |
|---|---|---|
| Damaged Package | Domestic (Ground/Express) | 60 days from delivery |
| Lost / Non-Delivery | Domestic (Ground/Express) | 60 days from ship date |
| Damaged / Lost | International | 21 days from delivery |
| Concealed Damage | All Services | 21 days from delivery |
| Freight Cargo | FedEx Freight | 9 months from delivery |
Prohibited Items Have Zero Coverage
FedEx publishes a list of prohibited items. If you sneak these into the network, you have zero coverage. Declaring a value on a prohibited item does not force FedEx to pay.
Common prohibited items include:
- Cash and Currency: Never ship cash. It is uninsured.
- Live Animals: Strict rules apply; general shipping excludes this.
- Illegal Contraband: Obviously excluded.
- Tobacco Products: heavily restricted and often uncovered.
Check the terms before you tape the box. If you ship cash and it vanishes, FedEx owes you nothing.
International Shipping Coverage
International shipments introduce complexity. The Warsaw Convention or Montreal Convention usually governs liability for international air travel. These treaties set liability limits based on weight, not value.
The payout is often calculated per kilogram. This amount is usually lower than the actual value of electronics or designer goods. Always declare a value for international shipments if the standard weight-based limit falls short of your item’s cost.
What To Do If Your Package Is Late
Insurance covers loss and damage, but what about delay? FedEx offers a Money-Back Guarantee on specific express services. If the package arrives even 60 seconds late, you can request a refund of the shipping charges.
This is separate from declared value. It refunds the shipping cost, not the item value. Note that FedEx suspends this guarantee during holidays or extreme weather events. Check the current status of the guarantee on their site before shipping.
Smart Shipping Practices
Protecting your shipment requires more than just checking a box. Smart shippers layer their defenses.
Use tracking alerts. Sign up for notifications so you know exactly when a package lands. This reduces the time a box sits on a porch.
Use “Hold at Location.” Instead of risking porch theft, have FedEx hold the package at a local Walgreens, FedEx Office, or grocery partner. This secure chain of custody prevents theft claims entirely.
Double-check the address. A wrong apartment number causes delays and loss. FedEx charges a fee to correct an address mid-transit, and this process often voids the money-back guarantee.
When you ask “are all FedEx packages insured?” remember that safety starts with the label you create. You decide the level of protection.
Final Thoughts On FedEx Liability
Relying on the default $100 limit works for low-value items like books or clothes. For anything expensive, fragile, or irreplaceable, you must intervene. You either pay FedEx for higher declared value or buy third-party insurance.
Read the fine print. Pack correctly. Declare the value. These three steps separate successful shippers from those left holding a denial letter.