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What is Route Shipping Insurance, and its Benefits to Online Sellers

Nicasio Co III
November 10, 2020

What is Route shipping insurance? When you Google the answer to this question, the search results won't show you its definition or articles. Instead, the search results are all about the merchants who partnered with Route shipping insurance. That is how popular Route shipping insurance is.

It quickly dismisses the cloud of doubt that hangs over the question, "Should I add shipping insurance?" considering the level of trust online sellers have with Route shipping insurance.

What is Route shipping insurance?

It is a premium shipping insurance that covers damaged, lost, or stolen items. Route is developed to mitigate the post-purchase experience with its package protection and visual order tracking capabilities.

According to its founder and CEO Evan Walker, during his interview with TechCrunch, the lightbulb moment happened when he heard a furniture shop owner's problems regarding items breaking in transit during shipping. As someone who has been in the e-commerce business for 25 years, Walker knows the woes of an online seller, especially when talking about shipping orders and its risks. Hence, the birth of Route shipping insurance.

Route is free for online sellers because the shoppers shoulder the fee. For orders under $100, Route will charge $0.98. Otherwise, the cost is 1.5%-5% of the cart total.

Should I add shipping insurance?

Although you do not personally do order fulfillment or shipping, please note that it is still part of your marketing strategy. Your job doesn't end after the customer places the order. You must provide complete and top-notch customer experience by delivering the order on time and without any damage.

Moreover, customers hate being left in the dark about their purchases and prefer to be updated about its status. According to a Narvar survey, 83% of respondents expect regular communication about their orders. Also, in the same poll, 63% of respondents will never purchase if the merchant doesn't have a return policy in place. 

Also, expect the incidence of stolen packages while the item is in transit. Based on a survey conducted by, "51% of respondents have not received a package they ordered online in the past six months." One of the typical culprits are the porch pirates who take advantage of packages left at unmonitored and unsecured areas. Unfortunately, 57% of respondents from the same survey revealed that they allow their parcels delivered in such areas.

That is why, as advised by, shoppers must ensure that the retailer offers an option to add insurance to its items because carriers don't take liability for uninsured packages.

does shipping insurance cover

What does shipping insurance cover?

To give you an overview or an idea about shipping insurance, we will also mention other types so you have a broader range of options regarding what insurance is right for your business.

You may also consider declared value coverage or third-party shipping insurance. In declared value coverage (or minimum carrier insurance), the shipping carrier will provide $100 coverage for free, but there is an additional fee for more than $100. This is the policy of some significant courier companies like FedEx, USPS, and UPS.

On the other hand, third-party shipping insurance (or "all-risk" cargo insurance) can give you full-coverage protection on all your packages regardless of  product value.

However, the problem with both is you need to file the claim on your own. But with Route shipping insurance, that burden is passed to your customers. Route also covers each ordered item's insurance, and the cost depends on how much the product is. As for replacements, Route pays for them, which means more sales for you.

Customers can also monitor their packages in real-time via a mobile app. They can visually track their orders wherever they are at any time.


With Route shipping insurance, the customer won't claim the refund or replacement from you, the carrier, or the marketplace where you are selling. Instead, Route will take care of everything so you can focus on more important tasks like selling and marketing your products. Shipping insurance also gives you peace of mind and provides your customers with an exceptional post-purchase experience.

If your question still goes something like, "What is Route shipping insurance?,” you came to the right place. Stallion Express is willing to assist you with your shipping insurance needs. For inquiries, you can call +1 877-863-7447 or email [email protected]

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