What does insurance cover for merchandise sent through the mail?

Insurance for merchandise sent through the mail is designed to provide indemnity coverage for items that are either damaged or lost during transit. This means that if a package is not received by the recipient because it is lost or if it arrives in a damaged condition, the sender can file a claim to receive compensation for the value of the items insured.

Indemnity coverage serves as a financial safety net, allowing individuals and businesses to recover the value of items that are crucial for their operations or personal needs. Coverage limits depend on the specifics of the insurance policy and the declared value by the sender at the time of mailing.

Shipping costs, theft alone, or delivery confirmation do not fall under the umbrella of the insurance coverage provided. While shipping costs are accounted for separately and are part of the overall expenditure of sending mail, they are not compensated by the insurance. Theft is a specific issue that may be a concern, but insurance covers a broader spectrum, including damages and loss. Delivery confirmation simply serves as a verification tool to track the shipment and ensure it reaches its destination; it does not provide any financial protection.