Are FedEx Shipments Insured? | Know Your Coverage

Yes, FedEx shipments come with limited carrier liability by default, and you can pay to raise the value cap on a package.

A lost or damaged package is a gut punch, even when it’s “just shipping.” The fix starts with a clear picture of what FedEx will pay, what it won’t, and what you must show to get a claim approved.

This article walks through what “insured” means in FedEx language, how declared value works, which records make claims smoother, and the mistakes that sink payouts.

Are FedEx Shipments Insured? What That Means In Practice

Many people use “insurance” as shorthand for “the carrier will reimburse me.” FedEx usually handles that through liability tied to a shipment’s declared value. Most services include a base liability amount. You can raise the cap by declaring a higher value and paying a fee.

That cap is not a blank check. Packaging, restricted items, proof of value, and filing deadlines all shape the outcome. If one piece is missing, the claim can be reduced or rejected.

How FedEx Default Coverage Usually Works

For many shipments, FedEx includes a starting liability limit at no added cost. The exact limit can vary by service, shipment type, destination, and your account terms. Treat any generic “$X covers everything” claim you see online with caution.

• Loss: If FedEx accepts responsibility under its terms, payment can be made up to the liability limit.
• Damage: FedEx can request the box and contents for inspection. If packing is not adequate, a damage claim can fail.
• Delay: Late delivery refunds and loss/damage claims follow different rules. Some services limit delay payouts or exclude them.

Declared Value Vs. Third-Party Insurance

Declared value is FedEx’s method for setting the maximum carrier liability on a shipment. You enter a value, pay a fee above the included amount, and that declared value becomes the ceiling for a covered claim, subject to limits and exclusions.

Third-party shipping insurance is a separate policy sold by another insurer. Some shippers prefer it for high-value goods, fragile items, or lanes where carrier limits feel tight. Even with a separate policy, clean packing and solid records still matter.

FedEx’s own pages are the best starting point for the rules: FedEx declared value and the FedEx Service Guide terms.

What You Need To Prove For A Claim

A claim gets easier when you can show three things fast: what you shipped, what it was worth at the time of shipping, and what happened in transit. FedEx may also ask to inspect the packaging, so keep the box and padding until the claim is closed.

Shipment Records

Save the tracking number, shipping receipt, and any pickup scan record. If you ship on an account, keep the shipment detail page and the invoice line item.

Value Records

For retail items, a paid invoice or store receipt works well. For business shipments, a commercial invoice, sales order, or proof of cost can work. For used goods, expect questions if you submit a “new” price with no matching proof.

Condition Evidence

For damage claims, take clear photos of the label, each side of the box, the inner packing, and the item. For missing contents, photograph the box, inner packing, and anything that shows tampering or torn tape.

Packing Choices That Change Claim Outcomes

Packing is where many damage claims fall apart. If a box is too weak, padding is thin, or the item can slide around, FedEx can deny a damage claim even when the tracking shows a rough trip.

Use a sturdy box sized for the item. Fill empty space so the item cannot shift. Keep the item from touching the box walls. Seal all seams with pressure-sensitive shipping tape.

If you ship breakables, use FedEx’s packing guidance as a checklist, then document what you did. See FedEx packing tips for box and cushioning basics.

Limits, Exclusions, And Deadlines

Even with a high declared value, liability can still be limited by service rules. Some item categories have special caps. Some destinations have different limits. Indirect losses like missed sales or production downtime are often excluded.

Deadlines are another common snag. Claim filing windows differ by service and country. Miss the window, and a valid loss can still be denied. Check the terms tied to your service and save a calendar reminder when you ship high-value items.

Coverage Area	What It Means	What To Save
Included liability	Base payout cap included with many services	Receipt, tracking, invoice line
Declared value	Paid option that raises the cap up to stated limits	Declared value record, proof of value
Packing compliance	Damage claims can fail if box strength or cushioning is not enough	Photos, box, padding, item
Restricted items	Some items have special rules or are excluded from claims	Item description, any hazmat paperwork
International documents	Customs paperwork affects value proof and delivery status	Commercial invoice, export documents
Delivery scans	Scan history can confirm delivery time and signature status	Tracking screenshots, signature record
Claim timing	Late filing can lead to denial	Deadline note, service terms
Refund vs. claim	Service refunds for delay are separate from loss/damage claims	Invoice, service guarantee details

How To Decide If Extra Coverage Is Worth Paying For

Start with the worst case: what would you lose if the box vanished and FedEx only paid the base liability amount? If that gap would hurt, raise the declared value or use third-party insurance for that shipment.

Use these questions to make a quick call:

1. What is the real replacement cost today? Use a number you can prove with a receipt or invoice.
2. How fragile is it? The more fragile the item, the more your outcome depends on packing.
3. How hard is it to document? Handmade goods, prototypes, and used items need cleaner records.

If you ship for a business, also think about your customer promise. If you refund fast and claim later, you are carrying the risk in the meantime, so your coverage choice matters.

International Shipments And Liability Basics

Cross-border shipments add customs and extra liability rules. Value proof needs to match what you declared and what you put on customs paperwork. If your documents conflict, claim review gets harder.

Keep two values straight: the value you declare for carriage and the value you list for customs. They can differ for some shipments, yet the paperwork still needs to make sense as a whole. If your commercial invoice says $200 and your shipment record shows $2,000, expect delays and extra questions during review.

Cross-border claims also move slower because clearance steps, handoffs, and local delivery partners can add more parties to the timeline. Save your commercial invoice, any duties or tax receipt, and delivery scans. If the receiver reports damage, ask them to keep the box and padding and send photos the same day.

How The FedEx Claims Process Typically Works

Most claims move through the same steps: you file, you upload proof, FedEx reviews, and a decision is issued. You may be asked to keep the packaging for inspection or to hand it over for review.

Gather Evidence Before You File

Take photos right away. Save invoices, payment proof, and any serial number record. If the item is damaged, stop using it until you have your photos and notes.

File In The Right Place

Start at FedEx claims, sign in, and follow the prompts for your shipment type. Upload documents in clear filenames like “invoice.pdf” and “box-photos.zip.”

Reply Fast To Follow-Up Requests

If FedEx asks for extra proof or wants to inspect the package, respond quickly and keep all packing materials until you get a final decision.

Know Who Gets Paid

Payments usually go to the shipper of record. If you are the receiver and you want direct payment, talk with the shipper early so you both know who will file and who will reimburse whom.

Why Claims Get Denied And How To Avoid That Pattern

Most denials come from a short list of problems:

• Claim filed late: The service deadline passed.
• Packing not adequate: Weak box, no void fill, or item touching the outer wall.
• Value proof missing: No invoice, no receipt, or a value that does not match records.
• Item excluded: The shipment falls into a restricted category under the terms.
• No clear carrier responsibility: The damage looks like prior wear or internal defect.

The easiest fix is a repeatable shipping routine. Keep one folder per high-value shipment with the label photo, packed-box photos, the invoice, and the tracking link.

Shipment Scenario	Best Proof Set	Fast Habit
Package not delivered	Receipt, proof of value, tracking history	Save tracking screenshots when movement stops
Visible box damage	Photos of box and item, invoice, packaging held	Photograph before discarding any packing
Missing contents	Photos of torn tape/box, item list, invoice	Record an unboxing video for high-value goods
Concealed damage	Inner packing photos, repair estimate, invoice	Stop using the item until photos are done
High-value electronics	Serial numbers, purchase proof, packing photos	Photograph serial numbers before packing
Business inventory	Commercial invoice, PO, cost record	Match declared value to invoice amount

Pre-Ship Checklist For High-Value Packages

This checklist keeps your file clean and your odds better if you need to claim:

1. Photograph the item and any serial number.
2. Pack with cushioning on all sides and no movement.
3. Seal every seam with shipping tape.
4. Photograph the packed box and the label.
5. Save the invoice or receipt with tracking in one folder.
6. Set declared value when the base liability cap is not enough.

If a claim ever lands on your desk, you will be glad you did this. It turns a stressful problem into a simple, well-documented request.