Shipsurance is terrible

With so much to love about Shopify, I’m continually surprised by Shipsurance. I’m posting this here to see if there’s a way to improve this process I’m missing, or if not, to create a place for others to say “me too”.

The claim process is slow, and we have to have our customers (the “intended recipient”) go fill out a form on our behalf in order for us to receive even the possibility of getting a claim paid.

That’s horrendous. It is not my customer’s fault that USPS loses their package, we want to offer good customer support, and have a deep order history with very few claims maid to Shipsurance. Why aren’t we trusted enough?

The effect is that we don’t ask customers to do it unless the order was large. Which, I assume, is Shipsurance’s model: create a poor customer experience to deter claims to keep more money.

Hi @spicemerchant

I hear you, and I totally get the frustration. Dealing with lost packages is already a headache, and adding a slow, customer-dependent claims process makes it even worse. It’s understandable that you want to provide a great experience for your customers, but Shipsurance’s system is making it harder for you to do that.

Why is Shipsurance requiring the customer to submit a form?

From what I’ve seen, Shipsurance does this to verify the claim and prevent fraud. They want confirmation from the recipient that the package was indeed lost or damaged before they approve any reimbursement. But I agree—this puts an unnecessary burden on both you and your customer, especially when you’re the one paying for the coverage.

Possible Workarounds & Solutions1. Try reaching out directly to Shipsurance

  • If you have a strong order history with few claims, you might be able to negotiate a better process. Some merchants have had success by proving their reliability and getting some flexibility in the claims process.
  1. Use Shopify’s built-in shipping insurance alternatives

    • If you’re using Shopify Shipping, certain carriers like UPS and FedEx offer built-in insurance up to a certain amount. This might be a better option if you frequently deal with lost packages.
  2. Consider third-party insurance providers

    • Some merchants have switched to providers like Route or U-PIC, which offer more merchant-friendly policies without putting the burden on customers.
  3. Pre-fill the customer form as much as possible

    • If you have no choice but to use Shipsurance, consider pre-filling the claim form with all the details before sending it to the customer. This makes it easier for them and increases the chances they’ll complete it.

Final Thoughts

I agree that the system seems designed to discourage claims, which is frustrating when you’re paying for the service. If this process is making things worse for your business, it might be worth exploring other options.

If you need extra help, just let me know asap. Thanks
Daisy.

Spicemerchant - Apologies for the late response, but we do not frequent the discussion boards. Creating a poor customer experience to deter claims is not the goal. The goal is to validate if a parcel is lost. Often times packages are scanned as “delivered” and the we want to make sure that your buyer did not receive the package. We always work with Shopify merchants if there are any difficulties in the process. If your customer emailed you indicating they did not receive the package, you can send that communication to us and we can use that as verification.

Copies of customer communication were not considered adequate in the past.
So I’m skeptical that you mean it here.