Coverage Rules for the Etsy Shipping Insurance Program

This shipping insurance program for Etsy users is managed by Shipsurance Insurance Services, Inc. Please call 1-866-852-9956 if you have any questions regarding the coverage. Claims are filed from within the Etsy website. You can check the status of an existing claim here.

Coverage:
Coverage provided is for all risks of physical loss or damage from an external cause (subject to exclusions) while in transit. Coverage is on a package-by-package basis. Inbound shipments are not covered.

If you reside in the state of California, you acknowledge that the insurance coverage is provided by certain Underwriters at Lloyds. Lloyds of London is a non-admitted insurer.

If you are shipping using the United States Postal Service, make sure to follow the USPS International Mail Manual rules located here: http://pe.usps.com/text/imm/welcome.htm. If you ship a prohibited item, there is NO COVERAGE.

If you are shipping using Federal Express (FedEx), make sure you are not shipping any prohibited items. The FedEx list can be found here: http://www.fedex.com/us/freight/rulestariff/prohibited_articles.html. If you ship a prohibited item, there is NO COVERAGE.

In order for a package to be covered, the shipping carrier must have verified acceptance of your package for mailing. This is found on the respective tracking websites of the shipping carriers. If a shipping label is printed but not scanned by the carrier as accepted it is deemed as never been mailed and there is no coverage.

Dollar Zero Coverage
Coverage for shipments sent via a covered shipping carrier is from dollar zero of declared value.

• Claims do not need to be filed with the shipping carrier for their default liability coverage.
• Premium is collected for the full declared value of the shipment.

Limits:
Insurance under the Etsy Insurance Program covers up to $5,000.00 per package. The maximum coverage per conveyance is $100,000.00.

Definitions:
Throughout this page the following definitions apply:
(SHIPSURANCE): The insurance agent, Shipsurance Insurance Services
(INS): The insurance company, Underwriters at Lloyds
(Insured): The insured, Etsy users
(Shipping Carrier): The company that is transporting the shipments covered by this program.
(Total Insured Value) or (TIV): The total value of the item(s) declared for insurance coverage. Includes the Shipping Carrier provided coverage, if any.

Exclusions:
The following is a list of exclusions. These are NOT covered:

1. Accounts, bills, currency, cash in transit, evidence of debt, checks, money orders, COD payments, coins (collectible coins are not excluded), securities and other negotiable papers, tickets, deeds, notes, gift cards, manuscripts, documents, neon items, hazardous material (per UPS Hazardous Materials List), televisions, computer monitors, or similar (including LCD, plasma, CRT, projection, LED, and similar), perishable cargo or similar property, eggs, any stone or ceramic slabs, automobiles, motorcycles, live animals, flowers, plants, seeds, cigarettes/cigars, cotton, guns (guns more than 100 years old are not excluded), tobacco, windows, plate glass, float glass.
2. Shipments sent to Afghanistan, Angola, Bolivia, Brazil, Burma, Congo, Cuba, Iran, Iraq, Ivory Coast (Cote d'Ivoire), Liberia, Mexico (Truck/rail shipments to and within other than as a connecting conveyance), Nigeria, North Korea, Paraguay, Sierra Leone, Somalia, Sudan, Syria, Venezuela. Any location that would be in violation of any U.S. economic or trade sanctions including OFAC Restricted Countries. For shipments to Russian and other Commonwealth of Independent States countries (includes Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Russian Federation, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan) coverage ceases upon touchdown of the aircraft at the airport of destination or upon discharge from the overseas vessel at the destination discharge port.
3. Shipments that require a signature confirmation or signature required service that are not sent using the required signature service are excluded from coverage.
1. The limits are for the TIV. The TIV does not change if a claim if for shortage or repairable damage.
4. Loss, damage, shortage, or non-arrival of any parcel and its contents which is (1) addressed incorrectly or (2) packed insufficiently to withstand the normal rigors of transit.
5. Loss, damage, shortage, or non-arrival of any parcel and its contents when it bears a descriptive label or packaging which describes, or alludes to, the nature of the contents. This includes shipments sent in the manufacturers packaging. International shipments that contain customs declarations are NOT excluded from coverage.
6. Loss, damage, shortage, or non-arrival of any parcel and its contents when it is obtained by trick, false pretense, or other fraudulent schemes.
7. Loss, damage, shortage arising out of loss of market, delay, loss of use, clean up costs, decay, inherent vise, changes in temperature or humidity, or other deterioration, any remote or consequential loss, whether or not arising out of a peril insured against.
8. 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.
9. Mechanical and Electrical Derangement (Internal Damage) - Loss of or damage due to mechanical, electrical, or electronic derangement unless there is evidence of external damage to the insured item or its packaging. Data files and installed computer programs are not covered for erasure, corruption, or loss.
10. AIMU Extended Radioactive Contamination Exclusion clause.
11. AIMU Chemical, Biological, Bio-Chemical, Electromagnetic, and Cyber Weapons Exclusion clause.
12. Insurance Fees

Conditions:

1. All parcels that are covered by this program will be shipped in strict accordance with all regulations of the carrier and amendments thereto.
   
2. Deductible
1. If a deductible exists, it will be deducted from the total claim amount. Deductibles are on a per package basis. The Insured is responsible for collecting any amounts from the Shipping Carrier that the Shipping Carrier may be liable for. Claims will be paid net of Shipping Carrier’s per package limitation.
   
3. Valuation
1. Underwriters shall be liable for the invoice value of property lost, destroyed or damaged, however, in the event there is no invoice, underwriters shall be liable for the actual cash value of the property. Claims for repairs shall be payable for the fair market costs of such repairs.
2. In no event shall claims exceed the value declared prior to shipment and declared for premium purposes.
   
4. Other Insurance
1. Underwriters are not responsible for any loss, damage, or shortage that is covered by another insurance policy or for carrier's liability.
1. If other insurance or coverage is present on a shipment, Underwriters will only provide the excess coverage
   
5. Claims
1. All packaging material and damaged goods must be kept in the original form as received. Packaging and damaged goods should not be disposed of or released to the shipping carrier before a claim is completed. Failure to comply can result in the denial of the claim due to insufficient packing.
2. Concealed Damage - Allows for the discovery of loss or damage up to 15 days after final delivery. The loss is deemed to have possibly occurred during the insured transit. Discovery of loss or damage occurring 16 days or later after final delivery is deemed to have occurred while the shipment was NOT in transit, and therefore, is not covered.
3. The Insured will file immediate notice of non-delivery, damage, or shortage with the Shipping Carrier and with SHIPSURANCE. Take proper exceptions on the delivery receipt when any loss or damage is apparent at the time of taking delivery. The Insured will complete a SHIPSURANCE claim form and provide all required documents to SHIPSURANCE within one hundred and twenty (120) calendar days from the date of shipment. If the carrier has liability and their remittance (carrier’s claim check and stub) or response has not been received by the Insured within the 120 day timeframe, all other claim paperwork must be received by SHIPSURANCE within one hundred and twenty (120) calendar days from the date of shipment. A complete claim submission includes a SHIPSURANCE claim form, a copy of the carrier's tracer form, a copy of the invoice or recent appraisal, photos of damaged goods and packaging, a repair estimate, signed claim statement by the recipient, and any other documentation requested by SHIPSURANCE. Failure to complete the claim form and follow all claim instructions could lead to non settlement of claim.
1. Shipments sent via the United States Postal Service (USPS), Canada Post, or consolidator:
1. If a claim is for loss the Insured must wait 20 calendar days (Domestic shipments) or 40 calendar days (International shipments) before filing a claim with SHIPSURANCE.
   
4. All damaged property that was not repaired must be made available (given) to SHIPSURANCE or INS if requested.
5. Once claim has been accepted and approved by the underwriters, prompt payment will be made to the Insured.
   
6. Claim Disputes
1. This coverage shall be construed and interpreted in accordance with the laws of the State of California.
2. The parties agree that any and all claims or disputes arising out of the coverage or the performance of the coverage shall be brought in Los Angeles County, California.
3. 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 program or as endorsed.
   
7. Other Provisions
1. If SHIPSURANCE does not receive payment from Insured by the date the invoice is due, SHIPSURANCE reserves the right to deny any coverage retained by Insured until such invoice is paid in full (including any such interest accrued). If Insured does not pay its invoice within 15 days after it is due, SHIPSURANCE reserves the right to cancel its coverage of Insured entirely.
2. If any term or condition of this coverage 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 program.
3. This coverage constitutes the entire agreement between the parties with respect to the specific rights, duties, and obligations identified herein.
4. 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 email notice.

By purchasing shipping insurance online, you certify that all information provided is accurate and truthful. The submission of a false, fictitious, or fraudulent statement may result in imprisonment of up to 5 years and a fine of up to $10,000 (18 USC 1001). In addition, a civil penalty of up to $5,000 and an assessment of twice the amount falsely claimed may be imposed (31 USC 3802). Warning: any fraudulent claims will make the shipper and/or consignee liable for any prosecution for mail fraud under federal crime code.