Is FedEx Insurance Enough for Your Business Shipments?

Business Shipment Insurance

If you’re planning on investing in FedEx insurance for your business shipments, you may be wondering if it’s enough for you. What exactly does FedEx insurance cover? Does any form of FedEx insurance offer full coverage? And should you invest in something in addition to FedEx insurance for absolute peace of mind?

If you’re concerned, we might be able to offer a few suggestions about how to gain the best possible coverage. We’re here to break down everything you might want to know about FedEx insurance, including what it covers, what it doesn’t cover, and how to find an insurance plan that meets your personal business’s needs.

What Does FedEx Insurance Cover?

FedEx insurance covers most of the circumstances that might make you concerned, including damage to your package items, package loss, and stolen packages. However, FedEx requires you to state a declared value so that they know exactly the amount for which they’re responsible.

In most circumstances, at least for the average FedEx customer, you likely won’t need to purchase FedEx insurance. This is because FedEx automatically covers items that have a declared value of $100 or less for no extra cost. But this doesn’t mean they will cover all items you declare fall into this range, at least if you’re dishonest. Don’t expect FedEx to cover your items for free and get full compensation, or FedEx will only pay you up to $100 in total.

What Doesn’t FedEx Insurance Cover?

There are many circumstances in which FedEx refuses to cover your costs in full. According to certain websites, FedEx will limit your declared value for certain item categories, including artwork, antiques, collectibles, film, fur, jewelry, photography, and precious metals. This may be because appraisals can be subjective.

Your coverage may also be limited in a couple of other areas, including instances where you don’t follow their approved packing practices. If you don’t appropriately pack and protect the items in your package container, FedEx may not agree to compensate you for your damages. 

Additionally, FedEx limits its coverage based on certain international restrictions. This means that if the package is sent to certain countries, FedEx may not be willing to give you the compensation you may have otherwise been entitled to, which can be frustrating.

How to Ensure You Get Great Coverage for Your Packages

If it sounds like FedEx insurance might not be enough for your business needs, you may need to take a few extra steps to ensure you get the protection you want. We have a few suggestions to guide you in the right direction for you and your business.

Search for Insurance With Higher Coverage

FedEx insurance appears to only offer protection up to $100,000, which may sound like a lot to certain people. However, for many larger or burgeoning businesses, this may not be enough to cover all of your shipments and packages.

A great way to get increased potential coverage is by searching for other insurance companies that offer more than this upper limit of $100,000. There are some that boost this coverage up to $150,000, and others that offer even more. No matter your needs, you should be able to find the coverage that makes you feel safe as a business owner or partner.

Find Insurance With Fewer International Restrictions

There are also insurance companies that offer more expansive coverage than the coverage FedEx provides. This means, especially if you’re sending packages or other shipments to many people internationally, you may want to consider looking elsewhere for your insurance.

While FedEx limits its coverage to some international locations, there are other companies offering insurance for more than 180 countries. This allows you to have a lot of flexibility and protection for your more valuable packages, including precious information or big orders for customers in other countries.

Get Better Coverage for Less

If you’re looking for more coverage to give your business the flexibility and protection it needs to grow and thrive, you may think that better insurance will be far more expensive for your company. However, in some cases, you can get great coverage for your packages and shipments for costs that are lower than prices offered by FedEx.

Other insurance companies know that they need to compete with FedEx, and the only way to get new customers is to offer them great service and flexibility for less than their biggest competitors. If you’re looking for more flexible coverage, you also have the ability to save your business some additional money. This means you can save that cash for other worries, projects, and paychecks.


If you were looking for information about FedEx insurance coverage, we hope you found the answers you needed. Great insurance for your packages doesn’t have to be pricey or less flexible than coverage offered by FedEx, meaning you can have peace of mind about the safety of your packages and other shipments. We hope our tips were helpful!


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