UPS Capital InsureShield

At a glance

Sold by

UPS Capital Insurance Agency, Inc. (UPSCIA), a licensed insurance producer, sells InsureShield. InsureShield comes in five variants: (1) the 2022 public Shopify terms (a historical record); (2) the current InsureShield app for Shopify; (3) InsureShield Connect, a direct policy you link by platform, API or file upload; (4) special commodities such as food, wine and spirits; and (5) Automatic Coverage, where all your UPS small packages get a set dollar amount of cover. Each variant runs on its own policy. Terms from one variant should not be assumed to apply to another.

Claims handled by

UPSCIA arranges the cover and acts as your broker or agent of record. Claims are filed through InsureShield's online claims process. Our review does not show who adjusts claims for the insurer.

Risk carried by

Insurer not named in the wording

Max per parcel

Depends on the variant: $20,000 per conveyance or occurrence (2022 Shopify terms); up to $70,000 on UPS Next Day Air and $50,000 on other UPS packages unless your declarations page says otherwise (April 2023 Automatic Coverage FAQ); for the current Shopify app, the maximum is shown at account setup.

Pays out on

2022 Shopify terms: the final price your customer paid plus freight, capped at the lesser of verified value or the amount declared, less any deductible. A co-insurance penalty applies if you under-declare. Current pages: invoice value plus shipping.

Relationship to carrier

Not clear from the wording

Wording available

Partner terms only

US pages never name the insurer. A 2020 California court opinion names Tokio Marine America for a 2018 UPS Capital house policy, but that shows only that year's insurer. The Canadian terms name AIG Insurance Company of Canada, which does not apply to US shipments. UPSCIA says it is not an insurance company.

Does UPS Capital InsureShield cover porch theft?

Current InsureShield pages list porch piracy as covered, but the policy conditions are not public. The 2022 Shopify terms end cover at delivery to the final destination.

Jewelry, watches, laptops, and phones

The 2022 Shopify terms exclude precious stones, fine art and jewelry, but add that commodity-specific terms may apply. The current Shopify app help page excludes cell phones and precious metals and does not list jewelry. Our review does not say how watches or laptops are treated.

What it excludes

• Delay, and consequential or indirect loss

  “The Policy provides no coverage for delay in transit or for consequential or indirect losses.”

• Temperature variation (standard program; the special-commodities program advertises cover for this)

  “temperature variation, whether or not caused by an insured peril;”

• Inherent vice

  “inherent vice;”

• Packages redirected or sent because of a fraudster or imposter

  “a shipment of cargo being re-routed, stopped in transit or retrieved at a point other than the original consigned delivery point pursuant to any instruction or representation to the transport carrier by a fraudster or imposter;”

• Cosmetic damage and electrical or mechanical derangement to used goods

  “rust, oxidation, discoloration, scratching, marring, denting, chipping and/or electrical or mechanical derangement to used goods, whether or not caused by an insured peril;”

• Improper packing by you

  “improper, inadequate or otherwise unsuitable packing or preparation of the cargo, provided this exclusion will not apply to the extent that: (i) such packing or preparation was carried out by a third party other than you”

• Seizure by a public authority

  “capture, seizure, arrest or detainment of goods by public authority;”

• Personal shipments, or contents unrelated to your business

  “No personal shipments or shipments with contents unrelated to Your business or organizational purpose will be protected under any Policy regardless of commodity type.”

• Shipments that would breach US sanctions

  “coverage will be null and void whenever it (or any related payment or other transaction) would be in violation of any U.S. economic or trade sanctions”

• Excluded commodities, such as cash, coins, stamps, live animals and plants, fireworks and bullion (2022 Shopify list)

  “…fireworks, explosive agents, fire-starting devices or aids; live plants, animals and insects, human tissues or organs, human remains, corpses or body parts; bullion”

How and when claims pay

Marketing says any carrier can be covered, and the 2022 Shopify terms make following the carrier's shipping rules a condition of cover. No public wording says whether InsureShield pays first or only above the carrier's liability. With Automatic Coverage, you buy higher cover through the UPS declared-value field.

Deadlines

• 2022 Shopify terms: your customer must tell you within 5 business days of delivery, and you must report to UPSCIA within 10 business days of that notice.

  “Customers are required to provide notice of loss or damage to You within 5 business days of the date of delivery and, pursuant to Section 5(l)(iv), You must report the loss or damage to UPSCIA within 10 business days of the date of the notice of loss or damage from Your Customer to You.”

• 2022 Shopify terms: file concealed loss or damage claims within 90 days of delivery and all other claims within nine months of delivery. For non-delivery, the clock starts on the scheduled or reasonable delivery date.

  “claims must in all events be submitted in writing within the following timeframes: (i) in the event of a claim for concealed loss or damage, within 90 days from the date of delivery; or (ii) for all other claims, within nine months from the date of delivery.”

• Current Shopify app help page: a 9-month claim window, with 90 days for concealed damage.

  “Extended claims filing with a 9-month window and 90 days for concealed damages”

• Current claims page: file as soon as possible. If a carrier other than UPS moved the package, notify that carrier immediately.

  “If you experience a loss or damage, you must file a claim as soon as possible.”

Payment time

Typically 'within a matter of days' once all required documents are in (claims help page; this is not a contractual deadline).

What changed recently

• 2022-05-31 The public Shopify terms and explanation of coverage were last updated. Our review notes the text was unchanged when re-fetched on 2026-10-31.

  “Last Updated as of May 31, 2022”

• 2023-04 The UPS Packages FAQ described Automatic Coverage, with no need to declare a value if your policy has automatic coverage.

  “There is no need to declare value if you have a policy for automatic coverage.”

• 2023-12-14 The UPS Capital Insurance Agency terms of service for direct policyholders were last updated.

  “Last Updated as of December 14, 2023”

What we couldn't confirm

• No issued policy, declarations page, schedule or certificate is public for any US variant.
• The US insurer is not named.
• Commodity schedules, deductibles and sublimits for Connect, special commodities and the current Shopify app are not public.
• Current porch-piracy and reshipment policy wording was not retrieved; those features come from help and marketing pages.
• The 2022 Shopify terms are a dated record. Our review does not treat them as the current Connect, special-commodities or Shopify app contract.
• Used goods: in a 2018 house policy described in a court opinion, UPS Capital insured used items for total loss only (FPA). The 2022 Shopify terms apply FPA only to motorized vehicles and exclude cosmetic damage to used goods. Our review does not know which rule the current policies use.
• Deductible: the only dollar amount found is a $100 deductible in the 2018 application. Current public terms say 'less any applicable deductible' without an amount.
• Declared value: a 2018 UPS Capital e-mail told shippers to leave UPS declared-value fields blank. The 2023 Automatic Coverage guide uses the declared-value field to buy cover. These are different products and eras.
• Concealed damage appears as an optional extra on the general help page, but as included on the Shopify app page.
• The 2022 Shopify terms let merchants offer cover to customers at checkout. The 2023 agency terms for direct policyholders say you may not offer cover to anyone else.
• The 'expedited reshipping up to 20%' footnote on the 2022 terms page may come from the current page template, not the 2022 terms.
• Live plants are excluded on the standard lists, but the special-commodities page features a bonsai shipper. Special-commodity terms are not public.
• Governing law differs by document: Georgia for the agency and Shopify terms, New York for the Technology Agreement.
• Canadian InsureShield terms name AIG Insurance Company of Canada. This does not identify the US insurer.
• No signature requirement was found in the public US InsureShield wording.

Frequently asked questions

Sources

1. Shopify Terms & Conditions | InsureShield partner_terms · Last updated May 31, 2022
2. InsureShield claims overview help · Retrieved 2026-10-31
3. InsureShield Shopify app help and support help · Retrieved 2026-10-31
4. InsureShield App for Shopify | InsureShield marketing · Accessed 2026-10-30
5. Help & Support for InsureShield Shipping Insurance | InsureShield help · Accessed 2026-10-30
6. UPS Capital Insurance Agency terms of service partner_terms · Last updated December 14, 2023
7. InsureShield product disclosure help · Retrieved 2026-10-31; undated
8. InsureShield for UPS Packages FAQ — Automatic Coverage distinction marketing · Print mark 04/23
9. InsureShield UPS Shipments public product page marketing · Retrieved 2026-10-31
10. How Automatic Coverage Works marketing · Undated; retrieved 2026-10-31
11. Murray v. UPS Capital Ins. Agency Inc. (Cal. Ct. App. G058353; 54 Cal.App.5th 628) certificate · Court opinion filed 2020-09-11, quoting a March 2018 certificate (historical)
12. UPS Capital Canada Insurance Brokers Limited - Terms and Conditions of Service partner_terms · Last updated July 17, 2024 (Canada only)

Insurrl doesn't sell insurance and isn't paid by any insurer. This page summarizes published wording; your own certificate, schedule, or account terms can change the result.