For most orders under $100, the coverage already included with the label is enough: USPS includes up to $100 of insurance on Priority Mail and Ground Advantage, and UPS and FedEx each include up to $100 of declared value on domestic packages, so buying extra protection on a $40 order is paying twice for the same risk. Extra coverage earns its cost only when the item's replacement value clearly exceeds $100, when the item is in a category the carrier excludes or limits, or when a single loss would hurt more than the premium across many shipments. The job is to know where those three lines sit for your shop and write them into a rule.

What does the included coverage actually cover?

Each carrier publishes what its included protection does and does not do, and the details differ enough to matter.

USPS includes up to $100 of insurance against loss, damage or missing contents on Priority Mail, Priority Mail Express and Ground Advantage. Claims require proof of value and, for damage, the packaging and contents may need to be presented. USPS sets filing windows by service, and a lost package claim cannot be opened until a waiting period has passed.
UPS includes up to $100 of declared value per domestic package. UPS is careful to say declared value is its maximum liability, not an insurance policy. Claims need proof of value and evidence of damage, and UPS may inspect the packaging.
FedEx likewise includes up to $100 of declared value per package, with the same distinction: it is a liability cap, not insurance. FedEx also lists items with limited declared value, such as certain jewelry, artwork and collectibles.

Two things are common to all three. First, coverage is capped at the lower of the declared amount and the proven value of the contents, so an item you bought wholesale for $30 and sold for $90 will generally be reimbursed at what you can document. Second, coverage never pays for a package that was delivered and later stolen from a porch; that is a delivery, not a loss, and is a separate problem covered in delivered but not received.

When is $100 clearly enough?

The order value, including shipping, is under $100. This is most orders for most small shops. The included coverage already matches or exceeds what you would claim.

You can prove the value easily. An order confirmation from your store, a marketplace invoice or a paid receipt is enough documentation for a claim at this level.

The item is not on an exclusion list. Everyday goods such as apparel, printed matter, cosmetics, household items and non fragile merchandise are covered normally.

Your loss rate is low. If you ship 500 packages a month and lose one, the included coverage handles that one and the premium on the other 499 would have been wasted. The math behind that is worked through in self insuring small parcels.

When do you need more than the included coverage?

Item value over $100. Anything above the cap is uninsured on the included coverage. A $250 order with $100 included coverage leaves you $150 exposed, which is where adding declared value or a third party policy starts to make sense.

Fragile categories. Ceramics, glass and framed art generate damage claims more than loss claims, and damage claims depend on packaging meeting the carrier's standard. Extra coverage does not fix a poorly packed box; it only pays if the carrier accepts the packaging was adequate. Fix the packing first, then decide on coverage.

Excluded or limited items. Each carrier lists goods it will not cover, or caps at a lower value. Cash, certain precious metals, some jewelry and collectible items commonly appear on those lists. If your product is on one, purchased carrier coverage may not apply at all, and a separate policy is the only real protection.

Marketplace exposure. On platforms where a lost item means a refund from you regardless of carrier reimbursement, the question is what a claim pays back versus what you refund. Tracking and an acceptance scan usually matter more than extra coverage for these disputes.

Concentration risk. If a single order equals a week's profit, insure it even if your average order does not warrant it.

A worked example

You sell handmade leather bags. Two orders go out on the same day.

Order A is a $65 cardholder in a padded mailer, going USPS Ground Advantage. The included coverage is $100, above the order value. The item is leather, not fragile and not excluded. Rule: ship it on the included coverage, keep the order confirmation as proof of value, and do nothing else.

Order B is a $340 tote bag in a 14 x 12 x 6 box. Included coverage is $100 on USPS, UPS or FedEx. Exposure on the included coverage alone is $240. Run the decision:

Value over $100? Yes, by a wide margin.
Excluded category? No, leather goods are ordinary merchandise.
Would a single loss hurt? Yes, it is several days of margin.
Action. Add declared value or purchased insurance to the full $340, or the amount you can document, on whichever carrier wins the rate comparison. Consider signature confirmation as well, since a high value item that shows delivered but is missing is not a covered loss.

Both labels can be bought from the same "To Ship" queue on GoatLabels, with the rate comparison showing USPS, UPS, FedEx and DHL and coverage options selected per order rather than as a blanket setting. There is no monthly fee; you fund a prepaid wallet and pay per label, as laid out on the pricing page.

How do you write this into a shop rule?

A rule a packer can follow without asking:

Order value under $100: included carrier coverage only.
Order value $100 to $250: add coverage to full value if the item is fragile or the customer is on a marketplace; otherwise included coverage plus tracking.
Order value over $250: add coverage to full value and require a signature.
Any item on a carrier exclusion list: use a separate policy or do not ship it on that carrier.
Every claim: file within the carrier's window, with the order confirmation and photos of packaging and damage.

The broader trade offs, including third party policies and how claims actually pay out, are in the shipping insurance decision guide. You can sign up to see coverage options quoted per label, and the FAQ covers how coverage add ons appear at checkout.

Quick answers

How much insurance is included with a shipping label? USPS includes up to $100 on Priority Mail and Ground Advantage, and UPS and FedEx each include up to $100 of declared value on domestic packages.

Is declared value the same as insurance? No, UPS and FedEx describe declared value as their maximum liability rather than an insurance policy, and it only pays what you can document.

Does included coverage pay for a stolen delivered package? No, once the carrier records a delivery the package is not considered lost, so porch theft is outside loss and damage coverage.

When should I buy extra coverage? When the documented item value exceeds $100, when the item is fragile or on a carrier exclusion list, or when a single loss would materially hurt the business.