Liability and Insurance

Liability and Insurance

This article provides a summary of YouParcel's liability position and recommendations for client insurance. For the full and legally binding terms, please refer to your Master Services Agreement (MSA).

YouParcel's Liability

YouParcel's liability for inventory in our custody is limited as defined in your MSA. Generally, liability is capped per unit or per incident based on the declared value of goods or a defined maximum, whichever is lower. YouParcel is not liable for:

  • Carrier delays or carrier-caused loss or damage once packages are in carrier custody.
  • Acts of force majeure (natural disasters, pandemics, government actions).
  • Loss or damage resulting from client-supplied inaccurate product information.

Client Insurance Recommendations

We strongly recommend that all clients maintain cargo/product liability insurance that covers goods stored at third-party warehouses. This is sometimes called "bailee" or "warehouse legal liability" coverage. Speak with your commercial insurance provider to ensure your policy covers inventory held at 3PL facilities.

Declared Value for Carrier Shipments

Carrier liability for lost or damaged packages is typically limited to $100 (USPS, UPS Ground standard) or similar low amounts unless additional declared value coverage is purchased at the time of shipment. If your average order value is high, consider adding declared value coverage. Discuss this with your account manager.

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