What does insurance coverage for packages provide?

Insurance coverage for packages primarily provides protection against loss or damage during transit. When you purchase insurance for a package, you are essentially insuring it for its full value, meaning that if the package is lost, damaged, or destroyed while in the carrier's care, the sender may be able to file a claim and receive compensation. This coverage gives senders peace of mind, knowing that they will not incur a total loss of the item due to unforeseen circumstances during shipping.

In contrast, proof of delivery pertains to the ability to verify that a package was delivered to its intended recipient, which is a separate service often provided by tracking features, not insurance. Free shipping options and lower rates for bulk shipping are related to shipping costs and promotions but have no connection to insurance or package coverage.