Executive Summary: FedEx insurance is not insurance in the traditional sense, but an extension of liability called "Declared Value for Transportation." The rate is approximately $1.50 per $100 of value, after a $100 deductible. The overall limit is $50,000 for Express services, but drops drastically to $1,000 for critical categories such as jewelry, watches or art. The claims process is strict, with short deadlines. For professionals shipping valuable goods, this solution presents significant financial and operational risks.
Do you ship with Fedex and wonder how to protect your packages effectively? This article is the most comprehensive guide to mastering Fedex package insurance in 2025. We'll take a straightforward look at rates, actual limits, costly exclusions and the exact procedure for claiming compensation.
The FedEx Parcel Insurance Mechanism: It's NOT Classic Insurance
It is crucial to understand that FedEx, like most carriers, does not sell an "insurance policy". The offer is divided into two distinct levels.
1. Basic Liability (Included but Minimal)
Every package you send with Fedex has a basic limited liability. In the event of proven loss or damage, compensation is capped at $100 (or approx. €92) OR an amount calculated on the basis of weight (approx. 22 SDR, or ~€28 per kg by air).
To put it plainly: for a 1 kg smartphone worth €1,200, you'd only get back $100 at best. That's almost non-existent protection for valuable goods.
2. The "Declared Value for Transport" Option (Ad Valorem)
This is a paid option that increases Fedex's liability limit to the value you declare. This is called Ad Valorem (value-based) insurance. You pay extra for Fedex to be liable for a higher amount.
When should you buy it? As soon as the value of your merchandise exceeds $100.
Rates and Ceilings 2025: How much does Fedex Protection really cost?
The declared value pricing structure is standardized. However, the ceilings are the most critical point to analyze.
FedEx Declared Value Rates
The cost is calculated in increments of declared value, over and above the basic $100.
- Value from $0 to $100: €0 (included)
- Value from $100.01 to $300: A minimum of approximately $4.50 (~€4.15)
- Over $300: Approximately $1.50 (~€1.38) per additional $100 of value
Examples of concrete calculations :
- For a package costing €400 (~$435): The cost will be approximately €5.50
- For a package costing €2,000 (~$2,175): The cost will be approximately €30.30
- For a package costing €10,000 (~$10,870): The cost will be approximately €149.90
Compensation Ceilings: The REAL Danger
This is where the most important limits for professionals lie.
- General cap (FedEx Express International): $50,000 per shipment
- Limit for Fedex Envelopes/Paks: $500
- Ceiling for "High Value" items: $1,000 (approx. €920). This category is extremely broad, and includes jewelry, watches, works of art, antiques, plasma screens and certain electronic devices.
DIRECT IMPACT: If you ship a luxury watch worth €8,000, even if you pay the corresponding ad valorem insurance, you will NEVER be compensated for more than $1,000.
Covered Goods vs. Exclusions: What Fedex Won't Protect
Beyond these limits, a list of products is simply forbidden to be shipped or excluded from any warranty.
- What is generally insurable (within limits): Clothing, spare parts, standard manufactured products, second-hand items (with invoice)
- What is systematically excluded or prohibited: Cash, credit cards, dangerous products, live animals, firearms
FedEx Claims Procedure: A Strict, Timed Process
In the event of loss or damage, speed and thoroughness are essential.
- Subscription: The value must be declared when the shipment is created. Cannot be added after
- Reporting a claim (critical deadlines): You have 21 calendar days for international damage, and up to 9 months for international loss.
- Provision of mandatory documents: Prepare claim form, packing slip, proof of value (invoice) and detailed photos of product and packaging.
- Investigation and reimbursement: FedEx investigates the case. An initial refusal is frequent and requires a detailed reminder.
The Strategic Alternative: When FedEx Insurance Is No Longer Enough
The analysis is clear: for an e-merchant or professional, the FedEx solution is a sieve of risks as soon as you regularly ship high-value products, particularly in categories capped at $1,000. This represents a financial, operational and brand risk.
It is precisely to close these loopholes that specialized solutions like Claisy exist.
FAQ : Questions Professionals Ask about FedEx Insurance