When it comes to sending a parcel internationally, you might be tempted to worry only about packing, the label, and which courier you want to use. What can get overlooked is shipping insurance. Should you pay for extra protection during transit? Or is it just a waste of money?

If you’re sending items overseas from Australia—whether they are personal gifts, online purchases (e-commerce), or business stock—it’s worth the consideration: what if something goes wrong?


In this article, we explain what shipping insurance is, what it covers, when you may want it, and how to better protect your international shipping parcel.


What Is Shipping Insurance?


Shipping Insurance provides protection for the value of your parcels or goods if they are lost, stolen, or damaged whilst in transit. Most international carriers, such as DHL, FedEx, and UPS, offer it as an optional service, while some may include limited coverage by default.

In Australia, major providers such as Australia Post, DHL, FedEx, and UPS offer varying levels of shipping insurance for international parcels. Learn more about how to insure your international shipment here.


What Does It Cover?


Generally, insurance on international shipping and packages will protect you for:


  • Loss of the package in transit
  • Theft during handling or customs
  • Damage occurring during transit
  • Non-delivery caused by mishandling


But be sure to check the fine print. Many providers exclude:


  • Fragile items that are improperly packaged
  • Perishables or live goods
  • Prohibited or restricted items
  • Delays (insurance typically only covers loss or damage)

For high-value or sensitive shipments, meeting packaging standards may be required to qualify for full compensation.


How Much Does It Cost?


Shipping insurance is usually calculated as a small percentage of the parcel’s declared value. Here’s a quick comparison:


  • Australia Post: Optional Extra Cover at $2.50 per $100 of item value
  • DHL Express: Limited liability included; full-value shipment insurance is available
  • FedEx: Declared value coverage (often $15–$30+ depending on value and destination)

For example, sending a $500 watch overseas with full coverage might cost you an extra $12–$20 depending on the provider. See more international shipping insurance options.


When Is Shipping Insurance Worth It?


You won’t need insurance on every parcel, but it’s well worth it when:


✅ Sending High-Value Items

Electronics, designer fashion, collectibles—if you can’t afford to lose it, insure it.

✅ Running an E-Commerce Store

Online sellers shipping internationally face real risks. Insurance helps protect profit margins and customer trust.

✅ Posting Fragile or Irreplaceable Items

Custom artwork, heirlooms, antiques—insurance adds peace of mind.

✅ Shipping to High-Risk Destinations


Some countries have unreliable customs or delivery networks. Insurance can reduce risk exposure.


When You Might Skip It


Consider skipping insurance if:

  • You're sending items worth less than $50
  • Your courier already offers sufficient cover
  • You're sending documents or low-risk items
  • You're shipping to safe destinations like NZ or the UK

Still, assess each shipment on its own. Even low-cost items can become a hassle across borders.


How to Add Insurance to Your Parcel

It's easy to add insurance before dispatch:

  • At Australia Post: Request "Extra Cover" at the counter or online
  • With Couriers (DHL, FedEx, etc.): Add insurance during booking when you declare item value
  • Through Third-Party Insurers: Offers broader coverage, especially for bulk or high-value shipments

Tips:

  • Keep the insurance certificate and receipt
  • Accurately declare the item value
  • Photograph packaging and contents
  • Follow packaging guidelines

Making a Claim


If things go wrong, act quickly. Most couriers require claims to be lodged within 30 days.

You’ll typically need:


  • Proof of item value (invoice or receipt)
  • Tracking number and shipping label
  • Photos of any damage (if relevant)
  • A clear explanation of the issue

Claim resolution can take 2–4 weeks. Providing complete documentation and being polite can help speed it up.


Final Thoughts


Shipping insurance is like a safety net. You won’t always need it—but when you do, it can make all the difference.


For Aussies shipping internationally, especially high-value or sensitive parcels, the cost of insurance is minimal compared to the potential loss. With increasing international shipping challenges—like customs issues, handling delays, and theft—insurance offers peace of mind and practical protection.


Before you send your next parcel overseas, consider: If I can’t afford to lose it, can I afford to send it without insurance?


Explore your options with Couriers & Freight to protect your next international shipping parcel.