Shipping a package is usually a routine process—print the label, hand it over, and track it to delivery. Still, even with reliable carriers like USPS, packages can be delayed, damaged, or lost. When that happens, the cost to a small business that mails and ships frequently can be more than financial. It can result in disappointed customers, strained relationships, and hours spent resolving issues.
Stamps.com helps reduce that risk by offering simple shipping protection options when you create your USPS labels. Understanding how this protection works and what to do if a package is lost can save you time and frustration.
When you ship using Stamps.com, claims are simplified because you gain two layers of insurance: USPS-included coverage and Stamps.com’s own additional coverage. Some USPS services include limited built-in protection, but this default coverage may not be enough, especially for higher-value shipments.
Stamps.com allows you to acquire additional insurance through ParcelGuard, a third-party shipping insurance provider. This option is available when you create a package label and is designed to cover loss, theft, or damage while the package is in transit.
The process is straightforward. You enter the shipment value, select coverage if needed, and the insurance is tied directly to the label. There’s no separate paperwork and no extra trip to another site at checkout.
Many shippers assume that USPS automatically covers the full value of a lost package. That’s rarely the case. USPS lost package claim coverage depends on the mail class used, and even then, limits apply. For example, certain items or values may not be fully covered without added protection.
This gap is where shipping insurance becomes essential. If you ship products for a business, the cost of replacing lost items can quickly add up. For individuals, losing a valuable or sentimental item can be just as painful. Insurance does not prevent loss, but it does reduce the financial impact when it happens.
Coverage depends on the type of insurance you use.
USPS insurance claims
Some USPS services include built-in coverage against loss or damage. This coverage has specific limits and conditions, and claims are filed directly with the carrier via the USPS insurance claim process.
Stamps.com helps by providing all the necessary digital documentation you need to file: the tracking number, a copy of the label, and proof of value (purchase receipt). USPS will not pay a claim for more than the item’s actual value, and they generally reimburse the postage cost (but not the insurance fee) if the article is lost.
ParcelGuard insurance via Stamps.com
ParcelGuard coverage can be added to most USPS shipments created through Stamps.com. This coverage typically protects against lost packages, damaged items, and theft during transit.
The coverage amount is based on the declared value you provide at the time of shipment (subject to ParcelGuard’s terms and limits). This added protection is often used by businesses shipping merchandise, collectibles, or time-sensitive items.
If you purchased additional insurance through Stamps.com, the process is streamlined within the mailing and shipping platform. You can file a claim easily by going to the History tab, selecting the label, and clicking File Claim. Once approved, most claims are processed and paid within 5 business days.
ParcelGuard evaluates claims independently of USPS, which can be helpful when carrier claims are delayed or denied under default coverage rules.
Before filing a claim, it helps to understand how packages become “lost” in the first place. In many cases, they aren’t truly lost—but delayed.
Common scenarios include:
As a result, most insurance providers require a waiting period before a package can be officially considered lost. Tracking activity—or the lack of it—plays a key role in this determination.
If your USPS package hasn’t arrived as expected, start with these steps:
Check for these before you move toward filing a claim. Once submitted, claims typically go through an initial review for completeness, verification of tracking and shipment details, and the final stage of determining reimbursement.
Times vary based on the complexity of the claim and the volume, but having accurate documentation speeds up the process.
One of the key differences between approved and denied claims is documentation. Good records make a clear case. Best practices include:
These steps take little time and can make a significant difference if something goes wrong.
For businesses, shipping protection is not just about reimbursement—it’s about customer trust.
Lost packages can lead to:
By insuring shipments through Stamps.com, businesses can resolve issues more quickly and maintain their service standards. Insurance allows you to refund or reship without absorbing the full loss, which helps protect margins over time.
Many businesses also build insurance costs into shipping fees or product pricing. This spreads risk evenly rather than reacting to losses after they happen.
The value of insurance depends on what you ship and how often you ship. It’s often worth considering if:
For low-value items, insurance may not always make sense. For higher-value or business-critical shipments, it often does.
Sending with USPS through Stamps.com’s mailing and shipping software gives you convenience, delivery tracking, discounted postage, and access to optional protection—all in one place. While lost packages are uncommon, they do happen. Knowing your coverage options and understanding the claims process puts you in control when they do.
Shipping protection doesn’t eliminate problems, but it does simplify recovery. With clear documentation, timely action, and the right coverage, a lost package becomes a manageable issue rather than a costly surprise.
If you ship regularly, taking a few extra moments to add protection can make a meaningful difference—both for peace of mind and for your bottom line.
Get started now with a free trial of Stamps.com for shipping protection and other solutions that make the mailing process easy and cost-effective for small businesses and individuals who send frequently.
