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Shipsurance is a scam!

  • May 16, 2023 1:21 PM UTC
  • 5 replies
  • 1 view

Not the first time we have had this company circumvent their own terms and sadly probably not the last. This time they are saying that the because the buyers IP address is not in the same location as the mailing address they will not honor the claim. So if someone sends a gift, uses freight forwarder, or for any other reason is not at the receiving address they will try to deny your claim. This company has no backbone and should not be allowed to sell insurance services in the US.

Only after we left truthful review did they pay the recent claims but because we would not edit or remove our truthful reviews they have now excluded us from using their insurance which means we will have to move on from Shipstation as they chose to stay connected with this scammy company.

      5 replies

      For those that think they are escaping Shipsurance but using Parcel Guard think again.. they have simply rebranded so they can keep scamming you. ... 

        • chips
        • May 26, 2023 3:10 AM UTC

        Pretty much any shipping insurance is a scam and should be legally looked at. Even direct insurance from the US Postal Service is a scam.  They want you to provide proof of something they claim they delivered, but the custom says they did not.

          • julio1
          • Jan 11, 2025 11:09 AM UTC

          @thegearattic Thanks for the heads up about Parcel Guard. Anyone reading this, stay away from that company at all cost. I was looking for an Alternative to Shipsurance because as you and others have said it's a scam. Parcel insurance is a scam and the further you go away from the carrier the more work it is to file a claim and the more scammy they get. Shipsurance will not honor a claim unless you file a claim with UPS so Yes, double the work and double the frustration. It's shameful what these companies do. They survive by scamming small business owners. 

          Another scam is the UPS carrier insurance. I don't know if it's the same company as InsureShield but if it is, it's a total scam. Why pay extra for insurance if no matter what happens to the package they only pay $100. We insured an item for $3000, it was damaged beyond repair. After going back and forth for two months with their adjuster, they send an email saying they will pay the full value of the claim. We got a check for $100. 

          # Shipsurance Scam # Shipsurance Review # UPS Insurance Scam # UPS Insurance Review # Parcel Guard Scam # Parcel Guard Review # ParcelGuard Scam # ParcelGuard Review # Shipping Insurance Scam # Shipping Insurance Review # Carrier Insurance Scam # Carrier Insurance Review


            I have been rail roaded and given the run around by ship saver insurance for weeks and weeks now. I have spend thousands and thousands of dollars insuraing hudreds of package. With my first claim ever with them, they refuse to pay it. Going so far as to say i did not use their service on the shipment. Ebay and even their own site clearly shows i did. I am sad about losing this money but even more sad0 that i see i honestly relied on them for all.my packages, only to know now they behave in this manner when a claim is filed. Their site is close to impossible to navigate. Links leading to no where. Then, when i did finally find areas to leaves messages, they were never answered. I had to go through ebay to contact them. That's when they casually replied my package(s) were never covered by them. So sad companies revert to effectively stealing from us normal people with micro businesses. In the future, i will use the more expensive usps insurance, but at least i know the usps is legitimate.

              • karab
              • Jul 29, 2025 2:16 PM UTC

              My best account needed a shipment as quickly as possible, we put the near $2K order together and shipped using expedited UPS service. Apparently using that option means that your packages are beaten to death before they arrive at their intended destination. So we paid UPS 3X what we normally spend and the packages were so roughly handled that the outside was covered oil (body oil was inside) and inside were 60 broken BOXED glass jars that had leaked all over everything else. The packages were so poorly handled that heavy duty PET plastic lids were broken. I have never seen anything this bad. I spent hours of my time trying to recover the money for this order-- I even involved the CEO of UPS and "leadership" at shipsurance/parcel guard (the same company). I have never experienced more run-around and avoidance from any company. They rob you of your hard-earned money. We found that EVERY TIME we have had to make a claim in the last year they make it so time consuming, having to double submit all paperwork that I disabled the ability for my team to select shipsurance when shipping. We use ShipStation rarely now and even though parcel guard/shipsurance shows up now even though I removed it, my team knows not to ever use it again. I had a 12 year relationship with Shipstation. They did nothing to help us. So disappointing. In any event, avoid parcel guard/shipsurance. It's not just a scam, it will hurt your business. They don't care about what happens to you or to your packages and their goal is to waste your time and beat you down to the point of giving up or quitting their services altogether. After a 12 year relationship the customer service agent wrote "the leadership has made their decision and I am not opening back up this ticket." 

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