Shipping insurance is a service which may reimburse senders whose parcels are lost, stolen, and/or damaged in transit.
In Canada and the US, shipping insurance is sold by postal services, courier companies, and shipping-insurance companies. Not all insurers will insure all goods. For example, postal services will not insure certain economy-class parcels, though other insurers often will.
Shipping insurance is normally less expensive than tracking service. In addition, if a parcel is damaged in transit, tracking is unhelpful; only an insurance service can reimburse the sender.
When practical, self-insurance is normally more economical than paying for insurance. See Insurance#Limited consumer benefits. Therefore, in many cases, the wisest option of all is to package items to withstand horrific abuse, to self-insure the goods, and to choose a delivery service which is inexpensive and reliable.