Parcel Insurance Guide: Protecting Your Shipments

Standard Compensation vs Insurance

There is an important distinction most people miss. Standard compensation is included in your shipping cost and covers loss or damage up to a fixed limit. Parcel insurance is an add-on that covers higher values. Most couriers offer both, but the standard limits are often surprisingly low.

Standard Compensation Limits by Courier

When You Need Extra Insurance

If the item you are sending is worth more than the courier's standard compensation, you have two options:

• Enhanced compensation from the courier — most couriers let you increase coverage when booking. DPD charges around £1-3 for enhanced cover. Royal Mail Special Delivery has tiered pricing up to £2,500
• Third-party parcel insurance — companies like Parcel2Go Insurance, Packlink, and specialist brokers offer standalone policies. Useful for items worth over £5,000 or for items couriers exclude (like electronics without original packaging)

What Is Not Covered

Courier compensation has exclusions that catch people out:

• Inadequate packaging — if the courier decides your packaging was insufficient, your claim will be rejected. Always photograph your packaging before sealing
• Prohibited or restricted items — see our prohibited items list
• Consequential losses — lost profits, missed deadlines, or emotional distress are never covered
• Delay (most services) — only guaranteed delivery services (like Royal Mail Special Delivery) offer refunds for late delivery
• Items left in a safe place — if you authorise the courier to leave the parcel and it goes missing, most couriers will not compensate
• Perishable goods — spoiled food or wilted flowers are not covered

How to Make a Claim

If your parcel is lost or damaged, follow these steps:

1. Report it quickly — most couriers have a 14-30 day window from the delivery date to file a claim
2. Keep all evidence — photos of damage, the outer packaging, the shipping label, and proof of the item's value (receipt, invoice, or listing)
3. Contact the courier directly — use their online claims form rather than phoning. Royal Mail, DPD, and Evri all have online portals
4. Be specific — describe exactly what was damaged and include the value. Vague claims get rejected
5. Escalate if rejected — if the courier denies your claim unfairly, escalate to their complaints department, then to the Postal Redress Service (POSTRS) for Royal Mail, or the relevant ombudsman

Typical Claim Timelines

Tips to Protect Yourself

• Always photograph the item and packaging before sending
• Keep proof of postage — the receipt or booking confirmation
• For items over £50, always use a tracked and insured service
• For items over £500, consider Royal Mail Special Delivery or DPD Enhanced
• For items over £2,500, use a specialist courier or third-party insurance
• Never send irreplaceable items (passports, original documents) without insurance

Compare Insured Courier Services

Use our price comparison tool to filter by insurance level. Each courier listing shows the standard compensation included so you can make an informed choice.