what’s shipping insurance is a service that protects the value of a shipment in case it gets lost, damaged, or stolen during transit. Many carriers, including USPS, FedEx, and UPS, offer shipping insurance as an optional add-on to standard shipping services. Depending on the carrier, the level of coverage may vary, and insurance can typically be purchased based on the value of the item being shipped. Shipping insurance is especially important for valuable or fragile goods.