Easyship allows merchants to offer optional shipping insurance directly to their buyers, displayed on the shipment tracking page and tracking emails after a label is generated.
This gives buyers added peace of mind, faster claims and a direct cash reimbursement if a shipment is lost or damaged during transit. For merchants, shipping insurance purchased by their shoppers can reduce the post-delivery support burden, protect from losses incurred by replacing and shipping lost or damaged goods—while delivering an opportunity to earn a share of revenue generated from each insurance purchase.
What Is Buyer Shipping Insurance?
Buyer Shipping Insurance allows end customers to purchase shipping insurance for their order after checkout, directly from the tracking page or updates prior to delivery.
If a shipment is lost or damaged in transit, the buyer can file a claim and receive reimbursement without going through the merchant or carrier claim process.
This insurance is:
- Optional for buyers
- Purchased post-checkout (via tracking updates)
- Paid for by the buyer, not the merchant
Buyer shipping insurance does not cover parcel theft. View the full insurance terms, conditions, and exclusions here.
How It Works for Buyers
If a merchant has enabled Buyer Insurance and is sending tracking emails:
- The buyer receives a tracking email or visits the tracking page
- If the shipment is not already insured by the merchant, the buyer sees an option to add shipping insurance in a defined period before delivery
- The buyer clicks Buy Insurance
- Payment is completed securely via Stripe
- The buyer receives:
- A confirmation email
- Instructions on how to file a claim if needed
If an issue occurs, buyers can file a claim here by using their tracking number.
How It Works for Merchants
Enabling Buyer Insurance
Buyer Insurance is controlled from your Tracking Email & Tracking Page settings.
- Toggle “Offer insurance to buyers”
- This setting applies to both tracking emails and tracking pages
New vs Existing Merchants
- Existing merchants: Buyer Insurance is off by default to respect existing settings
- New merchants: If tracking emails or pages are enabled, Buyer Insurance is on by default
Visibility in the Dashboard
When a buyer purchases insurance:
- The shipment shows “Insured by buyer” in the shipment details
- Revenue earned from buyer insurance is visible in Billing
- Merchant revenue share is paid out weekly
Once a shipment is delivered, buyer insurance is no longer available. If a buyer attempts to purchase insurance after the eligibility window, they will see an ineligibility message at checkout.
What’s Covered (and What’s Not)
Covered
- Shipments that are lost in transit by the carrier
- Damaged shipments as defined by the insurance coverage
Buyer shipping insurance includes both the product value and shipping cost and is based on the settings in your Insurance settings.
Not Covered
- Stolen shipments
- Any items excluded under Easyship’s standard insurance terms
Claims & Payouts
- Claims are filed directly by the buyer
- No merchant involvement is required
- Approved claims are paid as cash reimbursement
- Items are not replaced — payout is monetary only
This significantly reduces buyer support tickets, further correspondence with the carrier and refund handling workload for merchants.
Pricing Overview
Insurance pricing is:
- Calculated based on shipment value
- Displayed clearly before purchase
- Capped relative to the insured value
Buyers always see:
- The insurance price
- The maximum coverage amount before completing payment
- The insurance terms, conditions and exclusions
FAQs
Does the merchant pay for buyer insurance?
No. Buyer insurance is paid entirely by the buyer.
Can buyers purchase insurance if the merchant already insured the shipment?
No. Buyer insurance is only shown if the shipment is not already insured by the merchant.
Where does the insurance appear?
Buyer insurance appears:
- In tracking emails
- On the tracking page
Is this available for all shipments?
Availability depends on:
- Shipment status
- Time since label creation
- Merchant settings
Do merchants earn revenue from buyer insurance?
Yes. Merchants receive a revenue share from buyer insurance purchases, paid out weekly and visible in Billing.
Is this enabled automatically?
Existing merchants will need to opt in and select the options to purchase Buyer Insurance. New merchants will be automatically opted in when tracking is enabled.