If you've been in the jewelry or numismatic business for a while, chances are you've come across the term "declared value" when shipping high-value items. You may even think that when you declare a value with USPS, FedEx, or UPS, your shipment is automatically insured for that amount. Unfortunately, that assumption could cost you thousands of dollars.

In this post, we’re going to unpack the difference between declared value and actual insurance coverage, and why experienced jewelers need to take a closer look at how their valuable items are protected in transit.
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What Is Declared Value for Jewelry Shipping?

Declared value is the amount you state your package is worth when shipping with a carrier. The carrier uses that value to determine shipping costs and its liability in case of loss or damage. However, it's not the same as insuring the actual value of the items.

For example, FedEx explicitly states that declared value is not insurance but rather the maximum amount FedEx will consider liable for, based on the circumstances of the loss and subject to the terms of service.

The Common Misconception

Many seasoned jewelers assume that by simply declaring a value, they’re covered. The reality is far more nuanced. Declared value:

• May not cover the full market value of your item

• May exclude certain types of losses (like theft or mysterious disappearance)

• Often comes with strict documentation and packaging requirements

This can be especially problematic for jewelers or coin dealers shipping items worth $5,000, $10,000, or more.

Why Carrier Liability Falls Short for Jewelry Shipping

Here are a few reasons declared value doesn't offer the robust protection you need:

1. Carrier Exclusions: Most carriers exclude coverage for precious metals, loose stones, and high-value collectibles unless you use specific services (like USPS Registered Mail).

2. Value Caps: UPS, FedEx, and USPS all have caps on liability, and they may only pay the replacement cost—not the retail or appraised value.

3. Limited Theft Protection: Losses due to theft, tampering, or package rerouting scams may not be covered unless you have third-party jewelry shipping insurance.

What Real Shipping Insurance Offers

A specialized jewelry shipping insurance policy goes far beyond declared value:

• Covers the full insured value of the item (not just carrier liability)

• Includes protection against theft, loss, damage, and mysterious disappearance

• Often extends to international shipments and returns

A Real-World Hypothetical Example

A jeweler shipped a $12,000 diamond ring via a nationally known, reputable carrier, declared the value, and assumed it was insured. The package was stolen after being left at the wrong address. The carrier denied the claim due to a delivery confirmation and the lack of specialized service for high-value goods. The jeweler was left with a total loss.

With a commercial shipping insurance policy, that loss could have been fully reimbursed.

What You Can Do to Better Protect Your Business

If you regularly ship valuable items, here’s how to make sure you're truly protected:

1. Know Your Carrier Limits – Carefully review your shipping carrier’s liability terms and limits.

2. Purchase Third-Party Insurance – Partner with a commercial insurer that specializes in shipping insurance for jewelers and numismatists.

3. Audit Your Shipping Process – Ensure you’re using approved packaging and services for insured shipments.

Final Thoughts

Declared value might make your shipping label look impressive, but it won’t offer the peace of mind your business deserves. For jewelers and coin dealers, real shipping insurance isn’t optional—it’s essential.

Looking for tailored protection? Our jewelry shipping insurance solutions are designed to safeguard your high-value inventory in transit. Reach out to learn how we can help you ship smarter and safer.

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