When creating a Shippo shipment via POST https://api.goshippo.com/shipments, include an extra object in the shipment body with insurance sub-object containing amount (declared value as a string), currency (ISO code, e.g., USD), and content (description of goods for claims).
After retrieving rates, purchase the label via POST /transactions using the chosen rate object_id; Shippo automatically applies insurance from the shipment extras to the purchased label.
Alternatively, add insurance at transaction time by including extra.insurance in the POST /transactions body if not set on the shipment.
Verify the insurance was applied by checking the commercial_invoice_url or the metadata on the returned transaction object; retain the transaction object_id as your reference for any future claims.
To file a claim for a lost or damaged insured shipment, consult the insurer shown in the transaction (Shippo partners with carriers' own insurance or third-party insurers such as XCover) — the claims process may be external to the Shippo API.
Known gotchas
Insurance availability and underwriting vary by carrier and service level — not all Shippo carrier/service combinations support third-party insurance; check which carriers offer the insurance extra before relying on it.
The declared value in the insurance object must match the actual commercial value of the contents; over-declaring to receive a higher payout is insurance fraud.
Claims windows differ by insurer and carrier; initiate a claim promptly after discovering loss or damage — check current Shippo documentation for partner insurer claim deadlines.
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