As an e-tailer, USPS (United States Postal Service) is an essential logistics partner. But when it comes to protecting the value of your shipments, is their insurance offer really adapted to your business reality?
The short answer is: it's a viable solution for low-value shipments, but it quickly becomes unsuitable: full of risks, low Limits and complexity as soon as the value of your goods increases.
This article is your in-depth guide. We will analyze in detail the rates, Limits and exclusions of USPS insurance to give you a clear vision and enable you to make the best decision to protect your shipments and therefore your business. You can also find our 2025 carriers' parcel insurance comparison and the whole ad valorem encyclopedia with analysis of CMS offers and logistics solutions.
Understanding USPS Insurance: Basic and Optional
USPS offers two levels of coverage. The first is often included, but is largely insufficient.
- Included Insurance (the union minimum): For services such as Priority Mail and Priority Mail Express, basic coverage of up to $100 is automatically included at no extra cost. For a professional, this protection is anecdotal and covers only a tiny fraction of the risks.
- Additional Insurance: This is a paying option that allows you to insure your parcels for a higher declared value, up to a certain point. This is the type of insurance we'll be looking at in detail, offering domestic and partly international coverage.
Ad Valorem USPS 2025 rates (Domestic)
The cost of additional USPS insurance depends on the value you declare. Here is the official price list for shipments to the United States.
USPS Insurance Rates - Domestic Shipments (2025)
| Declared Value |
Cost of insurance |
| $0.01 - $50.00 |
$2.70 |
| $50.01 - $100.00 |
$3.40 |
| $100.01 - $200.00 |
$4.40 |
| $200.01 - $300.00 |
$4.45 |
| $300.01 - $400.00 |
$5.95 |
| $400.01 - $500.00 |
$7.45 |
| $500.01 - $600.00 |
$8.95 |
| $600.01 - $5,000.00 |
$8.95 + $1.50 per additional $100. |
The International Limit : An E-commerce Limit to Watch Out For
This is where one of the biggest risks for e-tailers lies. If you ship internationally, the USPS insurance indemnity Limit is significantly lower.
For shipments via Priority Mail Express International and Priority Mail International, coverage up to $200 remains included. Beyond that, the maximum Limit you can insure is just $900. This is an extremely low limit for any company selling high value-added products.
USPS Insurance Rates - International Shipments (2025)
| Declared valueLimit $900Limit ) |
Cost of insurance |
| Up to $200.00 |
$0.00 (Included) |
| $200.01 - $300.00 |
$11.85 |
| $300.01 - $400.00 |
$15.00 |
| $400.01 - $500.00 |
$18.15 |
| $500.01 - $600.00 |
$21.30 |
| $600.01 - $700.00 |
$24.40 |
| $700.01 - $800.00 |
$27.60 |
| $800.01 - $900.00 |
$30.70 |
The 3 Limits of USPS Insurance for E-merchants, in our opinion
Beyond the numbers, here are the three breaking points that make USPS insurance unsuitable for serious professional activity.
📉 Glass Limits
With a limit of $5,000 domestically and only $900 internationally, USPS leaves you unprotected for your high-value shipments. It's a risk few companies can afford.
❌ Penalizing exclusions
Many key e-commerce categories (jewelry, high-tech, etc.) are poorly covered or totally excluded. Packaging deemed "non-compliant" by the USPS may also invalidate any compensation.
⏳ S lowness and Complexity
The claims process is often long, complex and requires a lot of supporting documentation. Waiting weeks or even months for reimbursement has a direct impact on your cash flow and customer satisfaction.
Case Studies: The Real Impact on Your Margin and Cash Flow
Let's take a look at the impact of these limitations with two concrete scenarios that e-merchants encounter every day.
With USPS
- 💸 Insurance cost: $29.95
- ⏳ $2,000 blocked for weeks
- ❓ Refund uncertain if packaging questioned
With Claisy
- ✅ More competitive price (~$15.00)
- ⚡ $2,000 recovered in just a few days
- 🚀 Cash flow preserved, satisfied customer
With USPS
- 🛑 Limit max: $900
- ❌ $600 of uninsurable value
- ❗ Risk of dry loss + unhappy customer
With Claisy
- 🛡️ Total coverage of $1,500 possible
- ✅ Complete margin protection
- 💯 Total peace of mind for your international shipments
The Face-off: USPS Insurance vs. Claisy
To visualize the difference in philosophy, let's contrast the USPS offer with an insurance solution designed specifically for professionals.
❌ USPS approach
📉 Limits
Low, rigid Limits ($5k dom., $900 intl.), unsuitable for high-value products.
⏳ Compensation speed
Slow process (weeks/months) that ties up your cash and frustrates your customers.
🧩 S implicity
Multiple fee schedules, hidden exclusions, complex and bureaucratic claims process.
✅ Claisy approach
📈 Limits
High, flexible Limits (up to €100,000 and more) to suit your business.
⚡ Compensation speed
Ultra-fast compensation (just a few days) for immediate reinvestment and reshipment.
✅ S implicity
A single, transparent rate, broad coverage, 100% online claims reporting in just a few clicks.
FAQ : Ad Valorem USPS insurance
We answer your questions aboutUSPS insurance:
🤔 Do I need to provide proof of value to be compensated?
Yes, absolutely. USPS requires proof of value (purchase invoice, sales invoice) to process any claim. Without it, your claim will likely be rejected.
📦 What happens if my packaging is deemed "incorrect"?
This is a frequent cause of refusal. If USPS considers that the package was not securely packed, they may refuse to cover the damage, even if you have paid the insurance. The responsibility lies with you.
🌍 Can I insure a $2000 parcel for Europe?
No, not with USPS. Their International Limit is $900. For higher values, you're obliged to turn to a specialized third-party insurance company like Claisy, which can cover this value without any problem.
⏱️ Does USPS insurance cover late deliveries?
No. Standard USPS insurance only covers physical loss or damage to the package. Delays, even significant ones, are not grounds for compensation under this insurance.
🔄 Is the claims process the same for international operations?
The process is similar but often even longer and more complex for international customers. It involves waiting periods before a claim can be initiated (sometimes up to 60 days) and may require cooperation with the postal services of the destination country.
💎 Is jewelry or electronics well covered?
Coverage is very limited and subject to conditions. Jewelry, for example, often has a very low Indemnity Limit ($500) and requires a specific shipping service (Registered Mail®). For electronics, proof of damage unrelated to inadequate packaging is often difficult to provide.
🆚 USPS vs Claisy: What's the key difference?
USPS offers integrated basic insurance but with low Limits , numerous exclusions and a slow claims process. Claisy acts as an independent layer of protection with high Limits , broad coverage (including high-tech/luxury) and compensation within days, protecting your cash flow and your customer relationship.
Switch to Business Insurance
Stop juggling with low Limits , opaque exclusions and slow procedures. Your business deserves an insurance solution that really protects your value, speeds up your cash flow and gives you total peace of mind.
Ship safely with USPS thanks to Claisy
Stop wasting time and money on complex offers. Discover how Claisy integrates with your logistics to make it simpler and more profitable.
👋
Collaborative tool
Declare your parcels manually or import a simple CSV file.
🔌
Free connectors
Integrate Claisy into your CMS in 1 click for 100% automated insurance.
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API & EDI
For customized needs and deep integration with your WMS or ERP.
