Consumer Alert: Beware of Package Protection Insurance Scams
Beware of unlicensed, unauthorized, and potentially fake companies and individuals that try to sell you “package protection coverage” for lost, stolen, or damaged packages. Unlicensed entities are not legally allowed to sell insurance products and may claim these products are warranties, guarantees, or protection plans.
Often, these illegitimate companies and individuals will take your payment but won’t give you the protection you paid for. If this happens, your state’s department of insurance (DOI) may not be able to help if the company or person is not licensed by your state’s DOI to sell legitimate insurance.
Here’s how you can protect yourself:
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Before you buy a policy to cover porch piracy, make sure the provider is licensed. Find out on the NAIC’s Consumer Insurance Search page.
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If someone steals a package from outside your home, consider filing a claim with your homeowners or renters insurance policy. It may cover the loss.
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When you place an order online, carefully review the shipping protection options and who is offering them.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.