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Inventory insurance

Note: Beginning November 1, 2017, Shipsurance inventory insurance program will no longer be supported within the Shipwire Platform.

With Shipwire, you retain ownership of your merchandise, even when it is in one of our fulfillment centers. Our terms of service specifically limit any liability we may have in the event of inventory loss, damage or theft. If you want additional protection against damage, Shipwire provides optional insurance coverage across the Shipwire Global Fulfillment Center Network. Insurance is offered by Shipsurance and provided by Voyager Indemnity Insurance Company (an Assurant Company).

This will ensure that the entire chain-of-custody for your products is insured.

Generally, your freight forwarder or parcel carrier will offer Inbound insurance. Shipwire inventory insurance is available. Shipwire recommends each parcel shipped from Shipwire fulfillment centers are fully insured for the price of the products in the shipment.

How do I turn on inventory insurance?

  1. Log into your Shipwire account. Or sign-up for a free account.
  2. In your account drop down menu, locate the Inventory settings section and click on Inventory preferences OR locate the Billing section, then click on the Monthly Usage section.
  3. Under the Storing Your Goods section, locate and click the change deductible link to see how premiums will change at different storage and deductible levels.
  4. Select “ON” for Inventory insurance. You will be presented with a choice of a $500, $1000, or $10000 deductible as well as coverage amount. Higher deductibles come with lower insurance premiums.
  5. If needed, contact us for the most up-to-date form to submit a claim Shipsurance.

What does inventory insurance cover?

This inventory insurance policy covers damage while goods are in our care, custody or control at our designated fulfillment centers approved by our insurers. Some of the causes of damage covered while the goods are at our approved fulfillment centers are

  • damage during handling of your goods,

  • damage caused by Acts of God or Natural Disasters (see special deductible, below, for Earthquake, Hail, Windstorm, Hurricane or Flood).

How is inventory insurance calculated?

Fulfillment center coverage is based on the total value at risk per fulfillment center, in any calendar month period (e.g. Nov 1 to Nov 30 inclusive). In essence this means that Shipwire covers the value of all of your goods that went through the fulfillment center in a given month, even if certain items are there for a very short time. If this coverage amount goes above the level you are insured for, we will automatically charge you for the difference in insurance premiums. At the beginning of every new period, Shipwire will automatically reset you to the lowest insurance coverage needed. Click here to view the Shipwire inventory insurance rates.

Assuming $100k worth of insurance coverage, a $1k deductible, and $60k worth of inventory in Shipwire fulfillment centers on Nov 1.

On Nov 15th, you add an additional $80k worth of inventory across Shipwire fulfillment centers, but have already sold $50k of the existing inventory. For insurance purposes, you have a total exposure of $140k ($60k + $80k), as that is the total amount you can file claims against in that calendar month (even though inventory value is now $90k). As a result, on the 15th, we would charge your account for the additional coverage needed to keep your entire inventory insured (i.e. $200k insurance coverage, the next lowest level, at the same $1k deductible)

Can I insure only a portion of my inventory?

You must insure all your inventory. It is not possible to insure only a portion of your inventory, or to elect for inventory coverage in only select fulfillment centers.

What are the conditions of coverage?


Shipwire offers fulfillment center coverage for your stored merchandise through their partner, Shipsurance Insurance Service. The coverage is underwritten by Voyager Indemnity Insurance Company (an Assurant Company) if coverage is added to your Shipwire account at the time the inventory is received. Your purchase of inventory insurance is managed through the Shipwire.com website for coverage, the following coverage is enforced.

1.    Coverage: To cover approved goods and merchandise while temporarily detained in fulfillment centers approved herein by Underwriters. Approved goods and merchandise shall include the property of the Assured, or goods held by them in trust, or on commission, or on consignment or otherwise, or sold but not delivered or removed, or in joint account with or belonging to others, and for which the Assured may be liable in the event of damage.

Fulfillment center coverage shall insure against all risk of damage, except as excluded in the policy to which this endorsement is attached, and as hereinafter excluded or specifically provided for.

Covers direct damage while goods are in our care, custody or control at our designated fulfillment centers approved by our insurers. Some of the causes of damage covered while the goods are at our approved fulfillment centers are (1) damage during handling of your goods, (2) damage caused by Acts of God or Natural Disasters (see special deductible, below, for Earthquake, Hail, Windstorm, Hurricane or Flood.).

2.    Goods Insured: In consideration of premium as set forth elsewhere herein, this Policy is hereby extended to cover goods insured while temporarily detained in fulfillment centers approved by Underwriters subject to terms and as hereinafter provided.

To cover upon all new lawful goods and/or merchandise of every description, however, the following commodities are excluded from coverage: Accounts, bills, currency, evidence of debt, money, checks, money orders, COD payments, coins, securities, tickets, deeds, notes, gift cards, manuscripts, documents, bullion (gold, silver & other precious metals), gemstones (loose stones), furs, neon items, hazardous material, plasma televisions or monitors, LCD televisions or monitors, perishable cargo or similar property, eggs in the shell, ceramic slabs, marble slabs, granite slabs, slate slabs, stone slabs, grandfather clocks, grandmother clocks, stand-up clocks, automobiles, motorcycles, flowers, plants, seeds, guns, newsprint, tobacco, windows, plate glass, stained glass, and float glass.

3.    Deductible: In addition to any deductible that may apply each claim for damage hereunder (separately occurring) shall be adjusted separately and from the amount of each adjusted claim, the sum of $500, $1000, $10000 shall be deducted depending on the rate option chosen. Claims for Earthquake, Hail, Windstorm, Hurricane or Flood shall be subject to a deductible of $100,000 each and every occurrence.

4.    Full Value Reporting: If the total value at risk in any one location exceeds the limit of liability provided by this insurance, the Assured shall nevertheless, as soon as known, report the full amount at risk to Underwriters and shall pay full premium thereon, in consideration of which the principle of co-insurance is waived by Underwriters.

Acceptance of such reports and premium shall not alter or increase the limit of liability of Underwriters but Underwriters shall be liable for the amount of covered damage up to but not exceeding the applicable limit of liability.

5.    Perils Excluded: Underwriters shall not be liable for, nor shall this insurance cover any claims for damage, or destruction of property caused by or resulting from:

a.    wear and tear, gradual deterioration, dampness of atmosphere, extremes of temperature, insects, vermin, defect, corrosion, rust, inherent vice;
b.    theft, fraud, wrongful conversion, infidelity, or dishonest act, on the part of the Assured or the Assured’s employees.
c.    mysterious disappearance, unexplained shortage or loss or shortage discovered when taking inventory at fulfillment centers owned, leased, or controlled by the Assured;
d.    delay, loss of market, loss of use;
e.    mechanical derangement or breakdown caused by operation, demonstration or repairs;
f.    short circuit or other electrical injury or disturbance, exclusive of lighting to electrical appliances, devices or wiring unless fire ensues and then for the loss or damage by fire only.
g. processing, renovating, repairing or working upon, other than packing, wrapping, crating, screening, and other work usual to warehouse storage risks;
h. theft and/or exposure to weather conditions where any property is left outside or not contained in buildings.

6. Other Exclusions
a.    Loss, damage, shortage, or non-arrival of any parcel and its contents when it is obtained by trick, false pretense, or other fraudulent schemes.
b.    Loss, damage, shortage arising out of loss of market, delay, loss of use, clean up costs, decay, inherent vise, or other deterioration, any remote or consequential loss, whether or not arising out of a peril insured against.
c.    War Exclusion / Atomic and Nuclear Exclusion: In no case shall this insurance cover loss damage or expense caused by (i)War, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power. (ii) Capture, seizure, arrest, restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat. (iii) Derelict mines, torpedoes, bombs, or other derelict weapons of war. In no case shall this insurance cover loss damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.
d.    Mechanical and Electrical Derangement – Loss of or damage due to mechanical, electrical, or electronic derangement unless there is evidence of external damage to the insured item. Data files and installed computer programs are not covered for erasure, corruption, or loss.
e.    AIMU Extended Radioactive Contamination Exclusion clause.
f.    AIMU Chemical, Biological, Bio-Chemical, Electromagnetic, and Cyber Weapons Exclusion clause.

7.    JC 2003/008D UNITED STATES TERRORISM INSURANCE ACT: Additional coverage under the US Terrorism Risk Insurance Extension Act of 2005 has been declined.

8. Premiums
a. .10% against insured values per month with a $500.00 deductible per Insured claim
b. .08% against insured values per month with a $1,000.00 deductible per Insured claim
c. .05% against insured values per month with a $10,000.00 deductible per Insured claim

9. Other Insurance
i.    Underwriters are not responsible for any loss, damage, or shortage that is covered by another insurance policy.
a.    If other insurance or coverage is present, Underwriters will only provide the excess coverage

10. Claims
a.    All packaging material and damaged goods must be kept in the original form as received. Packaging and damaged goods should not be disposed of.
b.    The Insured will complete a SHIPSURANCE claim form and provide all required documents to SHIPSURANCE within sixty (60) calendar days from the date of shipment. Failure to complete the claim form and follow all claim instructions could lead to non settlement of claim.
c.    All damaged property that was not repaired must be made available (given) to SHIPSURANCE or INS if requested.
d.    Once claim has been accepted and approved by the underwriters, prompt payment will be made to the Insured.

11. Claim Disputes
a.    This Certificate shall be construed and interpreted in accordance with the laws of the State of California.
b.    The parties agree that any and all claims or disputes arising out of the Certificate or the performance of the Certificate shall be brought in Los Angeles County, California.
c.    The Insured agrees to INDEMNIFY AND HOLD HARMLESS SHIPSURANCE and Underwriters from any loss, liability, damage or costs, including court costs and attorney fees that they may incur due to misreading, misunderstanding, and not following the coverage requirements as per this SHIPSURANCE certificate or as endorsed.

12. Other Provisions
a.    If any term or condition of this Certificate is found to be invalid or unenforceable by any court of competent jurisdiction, the invalidity or unenforceability of any such term or condition shall not affect the validity and enforceability of the remaining terms and conditions of this Certificate.
b.    This Certificate constitutes the entire agreement between the parties with respect to the specific rights, duties, and obligations identified herein.
c.    Every user of SHIPSURANCE Insurance through this coverage will be monitored for adverse claims experience. SHIPSURANCE reserves the right to disallow any user to purchase SHIPSURANCE insurance at any time with 10 days written, certified notice.

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