Consumer Alert: Beware of Fake Shipping Insurance

March 20, 2024

Fraudulent shipping protection is worse than no protection at all

The Utah Insurance Department warns consumers of unlicensed companies and individuals that offer coverage for packages that are damaged in shipping or stolen from porches. Some companies will use technicalities and fine print to avoid paying consumers. Others may not have the necessary cash on hand to pay claims.

“When shopping online, pay close attention to your shipping protection options and who is offering the coverage,” said Insurance Commissioner Jon Pike. “Legitimate shipping coverage providers will be licensed as insurance companies or insurance agents with the Utah Insurance Department. These companies are vetted to ensure they operate according to the law and can pay claims when they arise.”

Unauthorized insurance sales are illegal and happen outside the Department’s purview. If these providers refuse to pay legitimate consumer claims, the Department may not be able to intervene.

Consumers can protect themselves by going to to see if the provider is licensed with the Department. Additionally, homeowners policies might help cover the theft of an online purchase left on your porch. This is best for high-value items worth more than a policy deductible.

For any questions about the unauthorized sale of insurance or to report suspected insurance fraud by a licensed producer, please contact the Utah Insurance Department’s Property & Casualty Division at 801-957-9305 or

Press Release
Consumer Alert: Beware of Fake Shipping Insurance