Insuring In-Transit: What’s Covered—and What Isn’t—On US Shipments

Sooner or later every jeweler, buyer or seller faces the same question: if I ship a ring, bracelet or loose stone, what will actually be covered if it’s lost, stolen or damaged in transit? This guide explains the two kinds of coverage you’ll see on U.S. shipments, the common carrier rules and exclusions, documentation you must collect, and practical choices for low-, mid- and high-value items. I explain the “why” behind each recommendation so you can choose the right protection without paying for needless extras.

Two basic types of protection: carrier liability vs. insurance

Carrier liability is the carrier’s baseline obligation under its contract of carriage. It’s often small — sometimes a token amount — unless you declare a higher value at drop-off. Carriers favor simple, uniform rules to limit their risk. That’s why a lost package containing a $7,000 sapphire won’t be covered for $7,000 unless you declared its value or bought additional protection.

Insurance (third-party or scheduled) is separate from carrier liability. You can buy a one-time transit insurance policy from a specialty insurer or rely on a scheduled endorsement from your homeowner’s / business policy. These policies are designed to pay full replacement value (subject to the policy terms) and are written with jewelry risks in mind, including theft and mysterious disappearance that some carriers won’t accept.

Common carrier approaches — what to expect

• USPS: offers retail insurance and Registered Mail for higher-value items. Registered Mail increases chain-of-custody security. Carriers may require proof of value like receipts or appraisals for higher payouts.
• UPS & FedEx: offer declared value options. If you don’t declare value, the carrier’s default liability may be very limited. For valuable shipments you must declare value at pickup and use their recommended packaging. Both carriers require claims to be filed promptly and will request photos, receipts and chain-of-custody details.
• Armored or couriers: For very high-value work—multiple items, inventory transfers, or stones over several thousand dollars—use an armored courier or specialized jewelry logistics firm. They provide tailored insurance and strict handling practices.

Why this matters: carriers limit losses through contract terms and packaging/handling rules. If you don’t follow their rules, a claim can be denied even if the package disappears.

What carriers and policies commonly exclude

• Improper packaging: If the shipper failed to pack to the carrier’s guidelines, claims can be denied. Use rigid inner boxes and neutral outer packaging.
• Concealed damage: Damage that’s not obvious on delivery often has strict reporting deadlines. If you accept a package without noting damage, recovery becomes harder.
• Inherent vice or gradual deterioration: Defects or items that fail due to pre-existing damage are typically excluded.
• War, confiscation, sanctions and export bans: International shipments can be denied if government action intervenes.
• Unscheduled jewelry on homeowner’s policies: Many personal policies limit off-premises jewelry theft to a low sublimit (often $1,000–$2,000). High-value pieces must be scheduled to get full transit coverage.

Practical documentation and evidence you must collect

• Invoice or appraisal showing value: itemized values with date, appraiser name and replacement cost. Example: “1.00 ct round brilliant diamond, G color, VS2 clarity, appraised replacement value $6,200.”
• High-resolution photos: shots from multiple angles, hallmarks, serial numbers, and unique inclusions. Save original image files and timestamps.
• Packaging photos: take photos of the item in its inner packaging and outer box before handing it to the carrier.
• Tracking and chain-of-custody: signed proof of drop-off, tracking number, and recipient signature on delivery. For pickup, document driver ID and time.
• Correspondence and receipts: payment receipts, purchase agreements, and any email or message confirming the shipment details.

Why this matters: Claims hinge on proof of value and proof the item was shipped in acceptable condition. Missing paperwork is the fastest route to denial.

How to choose the right protection — by value

• Low value (under $1,000): Carrier retail insurance is usually fine. Use tracked, signature-required services and keep receipts.
• Mid value ($1,000–$10,000): Buy declared value through the carrier and/or a single-shipment transit insurance policy from a specialty insurer. Package to carrier standards and require adult signature at delivery.
• High value (over $10,000): Schedule the piece on a homeowners or business jewelry policy for full protection and also use a specialized transit insurer or armored courier. Consider dual protection (scheduled policy + carrier declared value) for the best defense against disputes.

Example: shipping a 2.0 ct sapphire ring appraised at $12,000. Best practice: schedule the ring on your policy (annual premium adjustment), buy a transit policy for that shipment, use Registered Mail or armored courier, and require adult signature and ID at delivery.

Costs and premium guidance

Single-shipment transit insurance from specialty insurers typically costs a percentage of declared value. As a rule of thumb expect roughly 1–3% of shipment value for short domestic trips, depending on packaging, declared value, security measures and insurer. Scheduling a piece on a homeowner’s or business policy changes your annual premium by a smaller incremental amount (often a fraction of 1% of value annually), but it protects the item continuously.

Why prices vary: insurers price by risk—route, carrier, packaging, frequency of shipments and claims history.

Claims process and timelines — immediate steps

• Report the loss to the carrier immediately and file a claim within the carrier’s stated timeframe. Keep all tracking and shipping receipts.
• Contact your insurer (scheduled policy or transit insurer) at once and follow their claims checklist.
• Provide photos, appraisal, proof of drop-off and any delivery/signature records. Expect to produce proof of ownership and possibly a police report for theft claims.
• Be prepared for an adjuster to request the item returned for inspection if it’s damaged; do not discard parts of the packaging until instructed.

Why speed matters: Carriers and insurers have strict windows for reporting and investigating claims. Delays make it harder to reconstruct what happened.

Packaging and shipping checklist

• Neutral outer box with no “jewelry” markings.
• Padded inner packaging and a small rigid jewelry box to prevent movement (e.g., ring sits snugly in foam).
• Tamper-evident tape or security seals and photos of seals applied.
• Clear, itemized documentation inside (no valuations visible on the outside).
• Signature required on delivery, adult recipient or hold-for-pickup at carrier facility.

Shipping jewelry safely is about matching the value to the right combination of carrier, declared value and insurance. For everyday pieces use tracked, insured services. For high-value items, schedule coverage and use specialized transit insurers or couriers. Follow the documentation and packaging steps above so a claim—if needed—will be straightforward to resolve.