Insured Shipping: a Guide for Online Shops

Online stores ship thousands of parcels every day. But what if a product gets lost or damaged? This is where insured shipping comes to the rescue. This tool protects B2B and B2C businesses from financial losses and increases customer trust. In Germany, where logistics plays a key role, shipping insurance is becoming a must-have for e-commerce companies.

We, the Shipstage team, know how to make your shipments safe and efficient. Our service automates carrier selection, document processing, and tracking so you can focus on sales. In this guide, we will explain how insured shipping works, when it is needed, and how we can help you.

What is insured shipping?

Insured shipping is a service that protects your shipments from the risks of loss, damage, or theft during delivery. It acts as a financial cushion for online stores. You pay a small amount—the insurance premium—to receive compensation for the insurance value, that is, the product’s cost, in case of any issues. In Germany, where logistics meets high standards, shipping insurance helps meet customer expectations and avoid losses.

How does it work in practice? Here are the main steps:

• You choose a carrier and add insured shipping to the shipment.
• You specify the sum insured—the amount you want to insure the product for (e.g., €500 for electronics).
• The carrier delivers the parcel, and if something goes wrong, you submit a claim for reimbursement.
• The insurance company or carrier refunds the money according to the agreed insurance conditions.

For example, imagine you are shipping a batch of electronics worth €2,000. Without shipping insurance, losing this parcel would be a direct financial hit for an online store. With insurance, you receive compensation and maintain your reputation with the customer. The insurance terms depend on the carrier: some offer basic coverage, while others provide higher insurance for an additional fee.

We at Shipstage simplify logistics for your business. Our platform automatically selects reliable carriers, considering favorable delivery conditions, including insurance parameters. This allows you to focus on sales, minimizing risks and saving time.

Why does your online store need insured shipping?

Efficient delivery—this is the foundation of an online store’s operation. But it doesn’t always go smoothly. Packages get lost in warehouses, and goods get damaged due to careless handling. Sometimes they are stolen during transportation. Without insured shipping, all these risks become direct costs. In Germany, where logistics is fast and competitive, customers don’t tolerate mistakes. One unsuccessful case can cost not only money but also reputation.

Why is then, shipment insurance not just an option but a necessity? 

1. Protection of your own budget. If goods worth €1000 get lost, the insurance cover service returns this money to you. Without it, the online store faces a net loss. 
2. Customer trust. Buyers want to be sure that their expensive gadget or clothing will arrive intact and undamaged. Insurance shows that you care about your customers’ comfort. 
3. Market advantage. B2B partners, such as wholesalers, more often choose suppliers with higher insurance for valuable shipments. This is a signal of reliability. 
4. Peace of mind for the business. You don’t worry about force majeure circumstances because losses are covered under clear insurance conditions.

Consider the following situation: you sell jewelry. A ring worth €500 gets damaged on the way. The client complains and demands a refund. Without insurance, you lose both the goods and the money. With insured shipping, the carrier compensates this amount, and you quickly mitigate the negative consequences for the client. Or another case: equipment worth €2000 for a B2B client disappears. Insurance saves you from conflict with the counterparty and a financial blow.

All this is relevant for Germany, where delivery standards are high. Customers expect their orders to arrive on time and without defects. Our platform Shipstage helps select carriers with favorable insurance conditions. You get protection and can focus on growing your business, not on solving logistics problems.

Insurance cover with various providers

Carriers in Germany have different approaches to insurance. Some include basic protection in the standard service. Others offer higher insurance for an additional fee. To help an online store choose the optimal option, we compared the conditions of popular services.

Here is an overview in a table:

DHL

DHL automatically insures each package for an amount up to €500 without additional costs. This is convenient for inexpensive goods, such as clothing or accessories. If you send valuable shipments, like electronics or jewelry, you can arrange protection up to €25,000. The cost depends on the insurance amount. Usually from €3 per shipment. For example, for goods worth €1000, the fee will be €3. The insurance term lasts until the moment of delivery to the client. 

UPS

UPS offers basic insurance up to €510, which is suitable for small packages. For larger amounts, maximum insurance cover is available—€50,000. The cost of the insurance policy is 2 % of the declared value of the goods. For example, for equipment worth €2000, you pay €40. This is beneficial for B2B clients with expensive shipments. UPS also compensates losses quickly if there are relevant proofs regarding damage or loss of the shipment. 

DPD

DPD provides basic protection up to €520 without additional fees. This is sufficient for medium-cost goods, like books or small household appliances. If greater protection is needed, you can arrange additional insurance with a limit up to €13,000. The price for it starts from €5 per package and does not increase, even if the goods cost more. For example, whether it’s a gadget for €500 or equipment for €10,000—you pay the same rate. That’s why DPD is popular among small stores: the arrangement is simple, and the insurance price is predictable. 

GLS

GLS automatically insures each package up to €750 without additional costs. This limit is suitable for medium-priced goods, such as cosmetics or children’s toys. If your shipments cost more, you can arrange insurance up to €3,000. They charge a fee of €4 per package for this. So, for example, for goods worth €2000, you pay only €4 and get full protection. GLS quickly processes compensation requests in case of loss or damage to the package. 

Hermes

Hermes offers the lowest basic insurance, up to €50 for free. This is suitable for inexpensive small items, such as costume jewelry or small accessories. If greater protection is needed, you can arrange insurance up to €500 for an additional fee from €2. For example, for goods worth €300, you pay only €2 and receive compensation in case of problems. Hermes is geared towards budget shipments, so for B2B with valuable shipments, like equipment or jewelry, this is not the best choice. To receive a payout, clear proofs of loss or damage are needed—photos or documents.

The outlined conditions are valid as of March 2025 and may be adjusted by carriers. You choose a logistics operator that meets your business needs, from budget to premium options.

How do I take out goods insurance?

Arranging shipping insurance for B2B and B2C shipments is a simple way to protect the business. In Germany, where logistics is fast but not without risks, insurance saves from high-cost losses. We will explain how to do it step by step, so your online store operates without disruptions.

Here is how to arrange insurance: 

1. Determine the value of the goods. Assess how much the package costs. For example, a video camera for €800 or a batch of clothing for €2000. This will be your sum insured. 
2. Choose a logistics operator. Each of them has its own conditions. For example, DHL insures up to €25,000, Hermes up to €500. Check if the basic insurance covers your amount or if additional insurance for transport is needed. 
3. Add insurance. When arranging the shipment, indicate that you want to arrange protection for your cargo. In DPD this costs from €5, in UPS—2 % of the value. For example, for goods worth €1000 in UPS, you will pay €20. 
4. Keep the package of transport documents. A receipt for the purchase of the goods or a waybill will be needed for compensation if something goes wrong during transportation. 
5. Track the delivery. Make sure the package has arrived. If not, submit a claim for payout.

For B2B, arranging insurance is especially important. Imagine you are sending equipment for €5,000 to a wholesale buyer. In case of any problems with the goods, without insurance, this will be a significant blow to the budget and the contract overall. With shipping insurance, you will be able to recover the funds and avoid a conflict situation. For B2C clients, insurance increases trust. The buyer sees that you, as a reliable supplier, care about their order.

Shipstage makes this process easier. Our platform optimizes delivery, considering insurance conditions from carriers. We select reliable options for your shipments, such as cargo for €3,000, and provide convenient tracking. This saves time and protects your business.

What should you do if your parcel is lost or damaged?

Even the best carriers are not immune to problems. A box with equipment may arrive crushed. Or tracking shows “Lost” for a week. For an online store, this is not just an inconvenience but a risk. In B2B, the loss of a batch for €5000 threatens the disruption of a contract. In B2C, a buyer with a broken gadget for €600 demands a replacement. With insured shipping, you can recover the money and preserve your reputation. But you need to act quickly.

Here is how to do it.

Step 1: Check the delivery status

Open the tracking. If the package is “Lost” or delivered with defects, this is your signal. For example, a client reports: “My laptop for €1200 arrived with a cracked screen.” Record the date and time of detecting the problem.

Step 2: Collect evidence

Photograph the damage: the torn box, the broken goods. Keep documents—receipt, waybill, or invoice. For B2B, this may be an invoice for a batch of goods. Without evidence, compensation cannot be obtained.

Step 3: Notify the carrier

Contact them immediately. In DHL, the deadline for submitting a claim is up to 7 days; in GLS—up to 14, but check the current rules. Write briefly: “Package #12345 is lost; the value of the shipment is €800.” The sooner you do this, the better.

Step 4: Submit a claim for compensation

Fill out the form for insurance coverage. Specify the amount of damage and attach evidence. With higher insurance, you can claim large reimbursement amounts. For example, UPS compensates up to €50,000. Ensure everything complies with insurance conditions.

Step 5: Receive the payout

The timing depends on the carrier: GLS processes in 5–10 days, Hermes up to 20. For B2B, a delay in payout for a batch of €10,000 is significant pressure on the company’s budget. Also, regularly check the claim status.

Why is this important?

For B2B, insurance is the protection of deals. The loss of equipment for a wholesaler can cost a contract. For B2C, this is loyalty. A client with a camera for €900 that got lost expects a resolution, not excuses. Without shipping insurance, you lose both the goods and trust.

Example from practice

A client sent a video camera for €900 via DPD. The package disappeared. Within three days, he submitted a claim with a waybill and a photo of the receipt. In 10 days, he received compensation of €900. Without insurance, he would have had a net loss.

Parcel service insurance vs. shipping insurance

Online stores often confuse these two types of insurance. Parcel service insurance and shipping insurance sound similar, but they have different purposes. Understanding them is important to choosing the right protection for your business in Germany. We will explain the difference and help you make a choice.

Parcel service insurance — this is basic protection offered by the carrier. It is automatically included in the delivery cost. For example, DHL insures up to €500, and Hermes up to €50. This option is suitable for inexpensive and mid-value goods, like clothing, books, and budget electronics. But if the package costs more than the established insurance coverage, you are at risk. Compensation is limited, and the conditions are strict because the carrier needs evidence and a quick claim.

In contrast, shipping insurance is an additional service. You choose it yourself to cover the full value of the goods. For example, you send equipment for €3,000 via UPS and add protection for €60. This is called higher insurance because the limit increases to tens of thousands of euros. You control the amount and gain more peace of mind.

Here are the main differences:

• Coverage volume in parcel service insurance is €50–520. Shipping insurance: up to €50,000 depending on the carrier.
• Basic insurance is free; additional insurance will cost from €2–5 or a percentage of the cargo value.
• With shipping insurance, you decide what to insure. Basic protection is fixed.

For a business, the difference between these two types of transport insurance is critical. If you send a batch for €10,000, parcel service insurance won’t save your company from logistics risks. And insurance coverage will provide full protection. 

Insured shipping with Shipstage

Logistics is the “circulatory system” of every online store. But when a package gets lost or damaged, the business loses money and trust. We at Shipstage know how important it is to protect your shipments. Our platform was created to make insured shipping simple and beneficial for companies in Germany. We automate processes so you can focus on sales, not on delivery problems.

How does it work with us?

Shipstage unites sellers and carriers in one place. You enter the shipment details: weight, size, destination. We select optimal partners, considering price and reliability. Insurance is a protective part of this process. For example, you send a batch of equipment for €5000. Our system offers carriers with favorable conditions: DHL with protection up to €25,000 or GLS up to €3,000.

Why is this beneficial for B2B?

Firstly, this is real-time savings. You don’t have to manually search for carriers and compare their rates. We do it for you.

Secondly, absolute transparency of processes. You see which options are available and can add, for example, insurance for transport of valuable cargo.

Thirdly, maximum control. Real-time tracking shows where your package is currently and whether everything is fine with it.

Let’s consider another case. Imagine a situation: you own an online store with jewelry. You send a necklace for €2000 to a client in Berlin. Without insurance, the loss of a package with valuable goods will be a direct loss. With Shipstage, our platform selects a reliable carrier with favorable protection conditions. You add insurance and track the delivery in real time. If something goes wrong, we provide tracking and data in one place so you can quickly submit a claim for compensation and avoid unnecessary losses.

Unlike working directly with carriers, Shipstage automates all logistics. You don’t spend hours preparing waybills or searching for the best price. For example, for a shipment of €10,000, we will select a partner with an optimal rate and protection. This could be UPS with coverage up to €50,000 for 2 % of the value or DPD with a fixed rate from €5.

For small businesses, Shipstage means simpler logistics. For large companies—the ability to scale delivery. Our platform automates carrier selection and supports shipments across Germany. You enter the package details, and we select optimal options considering price and reliability, including insurance information. Thanks to real-time tracking, you always know the status of your goods.

All of the above is part of our approach to safe and smart logistics.

FAQ

What is the difference between insured transportation and legal liability?

Insured transportation—this is protection of your cargo from loss or damage. You pay for it separately to cover the value of the goods. For example, you send equipment for €2000 and insure it. Legal liability is the carrier’s obligation under the law. In Germany, it compensates only a portion of the losses, often up to €8.33 per kg. If the package weighs 2 kg, you will receive a maximum of €16.66. Insured transportation gives full control over potential logistics risks and legal liability—only minimal protection. 

What is the value of a parcel that is automatically insured?

Most carriers include basic protection. DHL and GLS insure up to €500 for free. DPD—up to €520; UPS—up to €510; Hermes—up to €50. This depends on the package weight and the company’s conditions. If the goods cost more, additional insurance is needed. For example, a gadget for €1000 requires separate protection, and otherwise you cover the difference yourself. Check this before sending. 

What risks does transportation insurance cover, and how long is the insurance valid?

Transportation insurance protects against loss, damage, or theft. For example, a box is crushed or lost in a warehouse. You receive compensation. Some plans cover delays or delivery errors. The insurance is valid from the moment of shipment until delivery to the client. For international packages, the term can be up to 60 days. 

What information do I need to get the costs of an insured shipment reimbursed?

You need evidence. Keep the receipt or invoice with the value of the goods. Photograph the damaged or empty box. Add the tracking number and shipment date. For example, for reimbursement of €3,000 for a lost batch, submit a waybill and photos. The carrier may request a description of the problem. The more details, the faster the payout. 

Can the insurance company refuse to pay out?

Yes, this is possible. If you violated the conditions, for example, did not report the loss in time, there will be no payout. DHL gives 7 days, GLS – 14. Without evidence (photos, receipts), the claim is rejected. If the goods are prohibited for transportation (explosives, liquids), the insurance does not apply. Check the rules of the insured parcel before sending to avoid refusal.