The best Shopify shipping protection apps let customers insure their orders at checkout for a small fee — covering lost, damaged, or stolen packages so you don't eat the replacement cost. Over 100 million packages were stolen or went missing in the US alone last year. Every time a customer's order disappears, you're the one fielding the support ticket, issuing the refund, or losing the customer entirely.
For merchants, the math works: you either collect revenue on protection fees (with claim rates typically under 8%) or you let a third party handle claims while you focus on selling. Either way, fewer angry emails in your inbox.
Not all shipping protection apps work the same way, though. Some let you keep 100% of the fees and manage claims yourself. Others handle everything for you but take a cut. The right choice depends on your order volume, your team size, and how much you want to be involved in the claims process.
Two Models: Self-Funded vs. Third-Party Insured
Before comparing apps, you need to understand the two pricing models — they change everything about how shipping protection works for your store.
Self-funded (merchant-managed): You charge customers a protection fee and keep all of it. When a claim comes in, you pay for the replacement or refund out of the fees you've collected. If your claim rate stays low, you pocket the difference as profit. If claims spike, you absorb the cost. Apps like Navidium and Simply Shipping Protection use this model.
Third-party insured: An insurance provider backs the coverage. They handle claims and payouts. You don't keep the protection fees — the provider does (or takes a commission). Your risk is zero, but so is your upside. Route and Guide use variations of this model.
Self-funded works best for stores with predictable shipping and low damage rates. Third-party insured makes more sense if you ship fragile items or high-value products where one bad month of claims could wipe out your collected fees. If shipping costs are already a concern, read our guide on reducing Shopify shipping costs before adding another line item.
7 Best Shopify Shipping Protection Apps Compared
1. Navidium Shipping Protection
Rating: 4.9/5 (350 reviews) | Model: Self-funded
Pricing: Free for up to 50 orders/month. Paid plans start at $29.99/month (up to 500 orders), $49.99/month (up to 1,000 orders), and $99.99/month for unlimited orders.
Navidium is the most popular self-funded option on the Shopify App Store. You set your own protection pricing, collect 100% of the fees, and handle claims through their built-in portal. The claims dashboard includes one-click refunds and automated handling rules so you're not manually reviewing every ticket.
It integrates with Recharge, Rebuy, and Bold for subscription stores, and supports multi-currency and multi-language setups. The analytics dashboard tracks protection conversion rates and click-throughs so you can optimize placement.
Best for: Mid-to-large stores that want to turn shipping protection into a profit center. If your claim rate stays under 5-6%, you keep everything above that as margin.
Watch out for: You're on the hook for claims. If you sell fragile products or ship internationally (where damage rates are higher), the self-funded model can turn against you during a bad month.
2. Simply Shipping Protection
Rating: 4.8/5 (127 reviews) | Model: Self-funded
Pricing: Free tier (10% commission on protection fees). Paid plans: $4.99/month (50 insured orders), $19.99/month (200 orders), $49.99/month (500 orders). 7-day free trial on paid plans.
Simply is the most flexible self-funded app when it comes to widget placement. You can add the protection toggle to the cart page, side cart, checkout, or post-purchase — and customize whether it's opt-in or pre-selected. It carries the "Built for Shopify" badge, which means it meets Shopify's highest standards for performance and design.
Claims settlement offers three options: refund, reorder, or store credit. The store credit option is smart — it resolves the claim while keeping the revenue in your ecosystem.
Best for: Smaller stores that want an affordable entry point. The free tier with 10% commission lets you test shipping protection without any monthly commitment.
Watch out for: The free tier's 10% commission eats into your margins. At higher volumes, the paid plans become more cost-effective.
3. Route — Protection & Tracking
Rating: 3.4/5 (340 reviews) | Model: Third-party insured
Pricing: Free to install. Charges billed separately by Route — typically a percentage of coverage, paid by the customer.
Route is the biggest name in shipping protection. It bundles protection with branded order tracking, returns management, and cash-back loyalty discounts. The coverage is backed by licensed insurance, so you're not liable for claims — Route handles everything.
The tracking page is a genuine differentiator. Customers get real-time updates with your branding, which reduces "where is my order?" tickets independent of the protection feature.
Best for: Stores that want a hands-off, full-suite post-purchase experience and don't mind giving up the protection revenue.
Watch out for: The 3.4-star rating reflects real merchant frustrations. Recent reviews cite slow claim resolutions and denied claims that merchants expected to be covered. Read the latest reviews carefully before committing.
4. ShipInsure Shipping Protection
Rating: 4.6/5 (58 reviews) | Model: Third-party insured
Pricing: Free for merchants. Customers pay for coverage at checkout.
ShipInsure covers lost, damaged, and stolen packages with the insurance cost paid by the customer. The app integrates with Gorgias and Zendesk for support teams that handle claims alongside regular tickets. It also works with Recharge for subscription orders.
The one-click post-purchase upsell widget is useful — customers who didn't opt in during checkout get a second chance to add protection after completing their order.
Best for: Stores that want third-party coverage without the complexity (or controversy) of Route. ShipInsure is simpler and more focused — it does protection and does it well.
Watch out for: With 58 reviews, it's still a smaller player. Check whether their coverage terms match your product categories and shipping destinations before committing.
5. Guide Shipping Insurance
Rating: 4.6/5 (41 reviews) | Model: Third-party insured
Pricing: Free to install. Customers pay for protection at checkout.
Guide positions itself on fast claim resolution. They replace products at full MSRP (not depreciated value) and use an approve-all-claims approach to minimize friction. The app uses Shopify's Checkout Extensibility for integration, which means it works within the native checkout flow rather than adding external scripts.
It integrates with TikTok Shop, Recharge, and NetSuite — useful if you sell across multiple channels and need protection to work everywhere.
Best for: Brands that prioritize customer experience over margin optimization. The approve-all-claims model means fewer disputes, but the economics depend on Guide's pricing for your product category.
Watch out for: Only 41 reviews. The approve-all-claims promise sounds great, but verify the actual coverage terms and exclusions for your specific products.
6. InsureShield (by UPS Capital)
Rating: 3.7/5 (44 reviews) | Model: Third-party insured (carrier-backed)
Pricing: Free to install. Per-shipment pricing: $0.80 per $100 for UPS/FedEx/DHL (up to $10K coverage), $0.95 per $100 for other carriers (up to $5K). Optional AI risk scoring at $0.30 per order.
InsureShield is different from every other app on this list. It's backed by UPS Capital — an actual insurance company, not a startup. The coverage is real carrier-backed insurance, not a self-funded or revenue-sharing model. The per-shipment pricing is transparent and scales predictably.
The AI risk scoring feature flags high-risk orders before you ship them. That's useful beyond just shipping protection — it helps prevent fraud and chargebacks. The app also generates automated chargeback appeal templates.
Best for: Stores shipping high-value products that need real insurance (not self-funded protection). The UPS Capital backing gives this legitimacy that startup apps can't match.
Watch out for: The 3.7-star rating suggests implementation issues. The per-shipment pricing model is more expensive than self-funded alternatives at high volumes, but you're paying for actual insurance — not just a revenue pool.
7. ShipProtect
Rating: 4.3/5 (37 reviews) | Model: Self-funded
Pricing: Free to install with limited features. Full plan at $9.99/month.
ShipProtect charges customers a percentage of cart value as shipping protection and lets you keep 100% of collected premiums. The app is lightweight — no claims portal, no insurance partner. You collect the fees, you handle the claims however you want.
It includes an auto opt-in feature (pre-ticked protection) and scaling insurance rates that adjust the protection fee based on cart value.
Best for: Stores that want the simplest possible self-funded setup at the lowest cost. At $9.99/month with no revenue share, it's the cheapest paid option.
Watch out for: Fewer features than Navidium or Simply. No built-in claims portal means you'll manage claims through your regular support workflow.
Which Model Should You Choose?
Pick self-funded if your average order value is under $100, your products aren't fragile, and you ship domestically. At claim rates under 5%, the margins are attractive — you're essentially creating a new revenue stream from checkout. Navidium and Simply Shipping Protection are the strongest options here.
Pick third-party insured if you ship high-value items ($200+), fragile products, or international orders where damage and loss rates are unpredictable. One bad month of claims on a self-funded model can wipe out months of collected fees. ShipInsure and Guide offer the best balance of coverage and merchant experience.
If you need actual insurance (not just a revenue pool), InsureShield's UPS Capital backing is the only option on this list with a licensed insurance carrier behind it.
Setup Tips That Apply to Every App
- Pre-tick the protection option. Opt-out converts higher than opt-in. Most apps support this — just check that it complies with your market's consumer protection rules.
- Price protection at 2-3% of order value. Under $2 feels like noise. Over 5% triggers price sensitivity. The sweet spot for most stores is $1.50-$4.00 per order.
- Show protection at the cart, not just checkout. Customers make the decision while reviewing their order, not while entering payment details. Cart-level placement consistently outperforms checkout-only.
- Track your claim rate monthly. If you're self-funded and claims exceed 8%, either raise your protection pricing or switch to a third-party model before the math turns against you.
Start with one app, run it for 30 days, and measure three things: protection opt-in rate, claim rate, and the net revenue impact. If the opt-in rate is under 20%, test different widget placements. If your claim rate is under 5% on a self-funded model, you've found a new profit line. If it's above 8%, switch to third-party coverage before the losses compound. For more ways to add revenue at checkout, see our roundup of the best Shopify shipping apps for small stores.