Every day, millions of packages crisscross the globe, handled by carriers like UPS, FedEx, and USPS. Most arrive safely. But what happens when your package—one that’s both important and valuable—vanishes into the shipping abyss?

That’s the frustrating reality Nargiz recently faced. She shipped a package through UPS. It never arrived. UPS admitted they lost it, but offered her just $100 in compensation. Why? Because she hadn’t purchased extra insurance.

So, what recourse does a consumer really have when a delivery company shrugs its shoulders?

 

What recourse does a consumer really have when a delivery company shrugs its shoulders? (source: DALL-E)

 

The Fine Print Behind the Shipping Label

Shipping carriers like UPS are responsible for moving incredible volumes. According to UPS, they deliver more than 22 million packages and documents daily. And while they strive for accuracy, lost or damaged shipments are bound to happen.

When they do, the company has a familiar fallback: blame the packaging.

In fact, UPS’s official line is that most lost or damaged packages stem from:

  • Customers choosing the wrong box size
  • Poor internal padding
  • Illegible or damaged labels

Even when UPS admits fault—as in Nargiz’s case—the standard response is typically the same: $100 in coverage, which they say is not technically “insurance,” but “declared value liability.”

This is where the gap in expectations becomes painfully clear for many consumers.

 

The Truth About "Declared Value" and Insurance

Here’s where things get confusing. UPS, like other major carriers, automatically includes up to $100 of declared value coverage on most shipments. But contrary to what many believe, this is not the same as full-value insurance.

Think of declared value as a limited liability cap—what UPS will pay if something goes wrong. If your package is worth more than $100 and you didn’t purchase extra coverage? That’s where the fine print turns into a big problem.

To cover the full value of your item, you must pay for additional declared value coverage through UPS—or use a third-party shipping insurance provider.

For example, if you’re shipping a $1,000 laptop, that extra few dollars in coverage could mean the difference between a full reimbursement and a hard lesson.

Key takeaway: Declared value is not a blanket insurance policy. If you’re shipping anything of significant value, you must opt in to full-value protection.

 

What to Do If Your Package Is Lost

If you’re in a situation like Nargiz, here’s what you can—and should—do:

  1. File a Claim Immediately
     UPS recommends starting a claim within 60 days of the scheduled delivery. Once submitted, expect a 2-3 week investigation period, though it can vary.
  2. Gather Documentation
     Include a detailed description, proof of value, tracking number, and shipping receipt. The more complete your documentation, the stronger your case.
  3. Ask for Escalation
     If your claim is denied or under-compensated, don’t be afraid to push back. Ask for a supervisor or submit a written appeal.
  4. Consider Third-Party Help
     You may also file a complaint with the Better Business Bureau or your state’s consumer protection agency, especially if you feel you were misled or treated unfairly.
  5. Use a Trusted Shipping Insurance Provider Next Time
     Services like Shipsurance or U-PIC allow consumers to insure packages independently, often at lower rates than the carriers themselves. (Disclaimer: these companies are examples of resources for shipping insurance. They are not affiliated with nor have they been vetted by TrustDALE.com)

 

A Lesson in Hidden Risk

It’s easy to assume that a global company like UPS will make it right if something goes wrong. And to be fair, they often do. But unless you've read the shipping terms closely—and opted into additional insurance—you're likely not as protected as you think.

Nargiz’s story is a cautionary tale for all of us: Don't let your package be more protected by hope than by a policy.

So next time you’re standing at the shipping counter or preparing an online label, ask yourself: What would it cost me if this never arrived? If the answer is more than $100, it might be time to invest in extra coverage.

 

Final Thought

Consumer frustrations like this are more common than many realize—and often avoidable with just a bit more information up front. That’s why TrustDALE is here: to help you make informed decisions, avoid scams, and connect with companies that stand behind their promises.

And if you've had a similar shipping nightmare, share your story. You might just help someone else avoid the same fate.