what does shipping insurance cover includes protection for lost, damaged, or stolen goods during transit. When a package is shipped with insurance, the shipper can be reimbursed for the value of the contents if they are lost or damaged. Shipping insurance typically covers the full value of the item being shipped, although some exclusions may apply depending on the carrier and type of service chosen. Common exclusions can include improper packaging, items prohibited by the carrier, or damage caused by natural disasters. It is important to check the terms and conditions of shipping insurance before purchasing.