can ups insure stock certificates — a practical guide

Can UPS Insure Stock Certificates?

can ups insure stock certificates is a common practical question for people handling physical equity certificates. This article explains what the phrase means, summarizes whether UPS insurance products can cover shipments of physical stock certificates, and gives step-by-step verification, claims expectations, and safer alternatives including electronic custody. Read on to learn how to confirm coverage before you ship and how Bitget Wallet and other secure custody options can reduce or eliminate the need to move negotiable securities by mail.

As of 2024-06-01, according to UPS InsureShield and UPS Capital materials, UPS offers insured shipping products and declared-value options, but coverage for negotiable instruments and securities depends on specific underwriting and policy language and must be confirmed in writing.

Background — what are physical stock certificates and why shipping them is risky

Physical stock certificates are negotiable instruments that evidence ownership of shares in a corporation. They often include security features such as signatures, embossed seals, and unique certificate numbers. Because certificates confer legal title, they are treated differently from ordinary parcels.

Shipping stock certificates is high-risk for several reasons. Lost or stolen certificates may be negotiated or altered; even if the certificate is recovered, the chain of title and authenticating paperwork can be complex. If a certificate is lost, the owner typically must follow a transfer-agent reissuance process that can require affidavits, indemnity bonds, waiting periods, and processing fees.

Insurance can reimburse the monetary value associated with a lost certificate in some cases, but insurance payments do not erase the legal and administrative steps required to reissue or replace certificates with the transfer agent.

UPS insurance and guarantee products that could apply

UPS offers multiple ways to manage loss risk when shipping valuables. Below are the principal UPS products and contract mechanisms relevant to shipping stock certificates.

UPS Capital / InsureShield

UPS Capital’s InsureShield (or equivalent insured-products underwritten through UPS Capital) is UPS’s program to provide parcel and cargo insurance. InsureShield typically underwrites loss or damage to shipped goods up to declared or invoice value and processes claims through a formal insurer. Coverage, claim procedures, underwriting acceptance, and exclusions are governed by the insurer’s policy language and applicable tariffs.

InsureShield can offer advantages such as claims processing through UPS Capital, multi-carrier or multi-modal coverage, and faster administrative workflows. However, acceptance of specific shipment types—especially negotiable instruments and bearer documents—is subject to underwriting and explicit policy terms.

UPS carrier liability and declared value

Absent separate insurance, UPS’s carrier liability is limited by their terms of carriage and published tariffs. Shippers can declare a higher value for a parcel to increase carrier liability, usually for a fee. Declared value increases the amount UPS will pay for loss or damage, up to stated limits and subject to exclusions.

Declared-value mechanisms are contractual: they change carrier liability under the bill of lading or shipping contract but do not substitute for insurer underwriting—if an insurer or underwriter excludes securities, declared value alone may not provide coverage.

The UPS Store Pack & Ship Guarantee

If you use a staffed location of The UPS Store to pack and ship your certificate, The UPS Store’s Pack & Ship Guarantee may apply when the store packs the item. This guarantee typically promises reimbursement for loss when the store packs the parcel and follows UPS shipping processes, subject to stated limits and exclusions. Customer-packed shipments and certain item types may be excluded.

Using The UPS Store packing service can reduce packing-related delivery problems and make you eligible for that extra guarantee, but it does not by itself change insurer exclusions for negotiable instruments unless the insurer explicitly covers them.

Do UPS insurance policies explicitly cover stock certificates?

Short answer: sometimes—but not automatically. Policies for UPS Capital / InsureShield and other insurer underwriters often include explicit language addressing cash, negotiable instruments, bearer documents, and securities. Many insurers either exclude these items or require a special endorsement and underwriting review.

Whether UPS (via InsureShield or declared-value procedures) will insure a specific physical stock certificate shipment depends on:

• The exact policy wording and exclusions of the insurer underwriting the shipment.
• Underwriting acceptance for negotiable instruments in the relevant jurisdiction.
• The shipment’s declared value, route, packaging, and handling instructions.
• Any additional endorsements, bonds, or documentary evidence the insurer requests.

Because of these variables, shippers must obtain explicit, written confirmation from UPS Capital (or the issuing insurer) that the subject shipment of stock certificates is accepted and covered.

Steps to get or verify coverage for shipping stock certificates via UPS

Follow these practical steps to verify whether UPS will insure your certificates and to reduce loss risk.

1. Contact UPS Capital / InsureShield directly and request written confirmation

Before shipping, call or email UPS Capital’s InsureShield team and ask whether shipments of physical stock certificates (negotiable instruments) are eligible for coverage. If the insurer accepts the risk, request a written Certificate of Insurance or written policy confirmation that clearly lists the subject item and declared value.

Get the insurer name, policy number, any endorsements, and contact details for claims in writing. Oral assurances are not sufficient when dealing with negotiable instruments.

2. Provide full shipment details for underwriting

Expect the insurer to ask for details: exact description (e.g., certificate number, issuing company), declared value, shipper and receiver names, shipping dates, packaging method, route, and requested handling (e.g., signature required). Underwriters may require additional documentation such as proof of title or account statements.

3. Use The UPS Store packing service if appropriate

If the insurer allows coverage and you want packing protection, have The UPS Store professionally pack the certificate and obtain the store’s Pack & Ship Guarantee documentation. Confirm that store-packed shipments remain eligible under the insurer’s terms.

4. Declare value and purchase required endorsements

Declare the full amount for which you expect coverage and pay any premium or fee. If the insurer requires a specific endorsement for negotiable instruments or securities, ensure the endorsement is applied and included in the Certificate of Insurance.

5. Require strict chain-of-custody measures and delivery controls

Minimize risk by requiring adult signature at delivery, using signature-release restrictions, adding delivery hold for pickup, or routing to an approved escrow or transfer-agent address. Keep detailed records of pickup, tracking, and communications.

6. Confirm transfer-agent procedures before shipping

If you are shipping to a transfer agent (for example, to reissue or replace a certificate), contact the agent in advance to confirm their preferred shipping address, any required supporting documents on arrival, and whether they will accept mailed certificates or require in-person drop-off.

Practical limitations, common exclusions, and insurer concerns

Even if UPS or an insurer provides general parcel insurance, several practical limitations commonly apply when it comes to stock certificates.

Common policy exclusions

Many insurance policies explicitly exclude or limit coverage for cash, bearer bonds, negotiable instruments, and securities. Where coverage is possible, insurers often require a special endorsement or policy wording change and may add higher premiums or conditions.

Jurisdiction and product availability

Insurance availability and permissible coverage can vary by state or country. Some insured-products and endorsements are not available in all jurisdictions. Confirm local availability with UPS Capital and the named insurer.

Underwriting due diligence and limits

High-value certificates or bearer instruments may trigger additional underwriting requirements, be limited to bankers’ blanket bonds or specialized cargo policies, or be declined entirely. Insurers balance the theft risk and negotiability of securities against their appetite to underwrite such shipments.

Legal and administrative consequences if a certificate is lost

Losing a stock certificate creates legal steps separate from insurance recovery. Transfer agents typically require a reissuance process that may include:

• Filing an affidavit of loss or indemnity statement.
• Obtaining an indemnity bond (often a surety bond) in an amount specified by the transfer agent or issuer.
• Waiting periods or registrant verification processes before reissue.
• Payment of transfer-agent fees for reissue.

Insurance proceeds may reimburse the economic loss (subject to policy limits and exclusions), but the owner still needs to satisfy transfer-agent requirements to restore registered share ownership. Coordinate with the transfer agent early if an insured shipment is planned.

How to file claims with UPS Capital (what to expect)

If an insured shipment is lost or damaged, follow these typical steps for filings and documentation:

• Report the loss promptly via the insurer’s or UPS Capital’s claims portal or phone line. Policies and InsureShield materials specify claim windows—file early to preserve rights.
• Provide proof of value (purchase invoice or broker statement), original shipping documents, packing photos if available, tracking records, and a copy of the Certificate of Insurance or endorsement.
• If theft is suspected, file a police report and provide it to the insurer. Insurers may require a police report for theft claims.
• Cooperate with any insurer investigations; provide requested documentation quickly. Retain originals of all documents and correspondence.

Expect insurer timelines for evaluation and potential settlement; prompt, thorough documentation accelerates claims processing. Remember that an insurance settlement typically addresses monetary loss, not the administrative reissuance steps required by the transfer agent.

Alternatives and recommended best practices (safer than shipping)

Because of the administrative and legal complexity around physical certificates, consider safer alternatives:

Prefer electronic registration (DRS / book-entry) or custodial transfer

Direct Registration System (DRS) or book-entry electronic registration eliminates physical certificates. Converting certificates to electronic form with the issuer or transfer agent removes shipping risk. If you hold a certificate and want to avoid mail, contact the transfer agent about re-registering shares electronically.

Bitget Wallet and broker custody: for crypto-native or tokenized securities and for other custody needs, Bitget Wallet provides secure custody for supported digital assets. When dealing with tokenized securities or securities-related digital assets, use Bitget Wallet and Bitget custody solutions to minimize the need for physical movement.

Use specialized couriers, escrow, or bank services

For unavoidable physical transfers, consider specialized securities couriers, armored transport, or bank escrow services that are familiar with negotiable instruments and provide tailored insurance/bonding. These services can offer bespoke coverage and chain-of-custody assurances that standard parcel insurers may not provide.

Send directly to transfer agent or broker with advance notice

If shipping to a transfer agent (e.g., for reissue), notify the agent in advance so they can expect the shipment, confirm receipt procedures, and minimize processing delays.

Employ robust packaging and delivery controls

Use tamper-evident, low-profile packaging to avoid advertising contents. Obtain professional packing services (The UPS Store), require adult signature on delivery, and avoid delivery to unattended locations.

Example scenarios (typical outcomes)

• Scenario A: A low-value certified duplicate certificate is insured under InsureShield after underwriting review. The shipment is lost, the insurer pays declared value, and the owner works with the transfer agent to reissue shares using the insurer payout and requested affidavits.

• Scenario B: A bearer-style certificate or negotiable instrument is declined by the insurer. The shipper must use a bank courier or in-person delivery, and the transfer-agent reissue process is initiated because the certificate cannot be shipped with standard parcel insurance.

• Scenario C: A certificate shipped without insurer confirmation is lost. Carrier liability is limited by UPS terms and declared value was not properly applied; the shipper faces transfer-agent indemnity procedures and may not be fully reimbursed.

These scenarios illustrate the importance of pre-shipment underwriting confirmations and using appropriate delivery alternatives.

Checklist before shipping a stock certificate via UPS

• Confirm in writing with UPS Capital / InsureShield whether can ups insure stock certificates for your specific shipment and obtain a Certificate of Insurance.
• Provide full description, declared value, and required documentation for underwriting.
• Use The UPS Store packing service where applicable and retain packing receipts and guarantee documentation.
• Require adult signature and specific delivery instructions; avoid release-to-mailbox options.
• Notify and coordinate with the transfer agent or broker in advance.
• Consider alternatives: DRS conversion, escrow, bank courier, or specialist securities courier.
• Keep copies of all communication, insurance endorsements, and purchase/ownership records.

Filing timelines and common evidence requested by insurers

Insurers typically require claims to be filed within a specified window from the delivery or loss date. Expect to provide:

• The original shipping waybill and tracking history.
• Proof of value (purchase invoice, broker statement, or valuation documentation).
• A copy of the Certificate of Insurance or endorsement showing negotiable-instrument coverage.
• Police report (if theft suspected).
• Documentation proving the chain of title and ownership of the certificate.

Check the insurer’s policy for exact deadlines and documentation lists; missing deadlines or documents can jeopardize recovery.

Why written confirmation matters

Negotiable instruments present both high monetary and legal risk. Underwriting decisions and exclusions vary across insurers and jurisdictions. A written Certificate of Insurance or endorsement naming the policy, the insurer, and the specific insured shipment provides legal protection and clarity about what is covered. Without written confirmation, you risk a denied claim based on an exclusion you could have mitigated earlier.

How Bitget and electronic custody reduce these risks

If your overall goal is to avoid the risks of moving physical certificates, consider electronic options and custody solutions. Bitget offers custodial and wallet services for supported digital assets and can be part of a strategy to reduce physical securities handling. When records can be represented or managed electronically (for tokenized assets or other supported instruments), transferring ownership electronically through trusted custody avoids shipping risks entirely.

Note: converting traditional equity certificates to electronic form (DRS) is handled by transfer agents; Bitget Wallet and Bitget custody are solutions for digital-asset custody and should be used for relevant asset types according to their product terms.

Quick reference: who to contact and where to verify

• UPS Capital / InsureShield: contact their underwriting team for certificates and request written confirmation.
• The UPS Store: use professional packing to obtain Pack & Ship Guarantee documentation when applicable.
• Transfer agent (e.g., Computershare or the issuer’s agent): confirm reissue procedures and preferred shipping instructions.
• Insurer named on the Certificate of Insurance: confirm policy wording and any endorsement language about negotiable instruments.

As of 2024-06-01, according to UPS InsureShield materials and UPS Capital guidance, coverage and underwriting for negotiable instruments are specialized and must be confirmed in writing with the insurer prior to shipment.

Final recommendations and next steps

If you are considering shipping certificates, first ask: can ups insure stock certificates for this particular shipment? Don’t rely on declared value alone. Instead, contact UPS Capital/InsureShield, request written confirmation, and consider safer alternatives such as DRS electronic registration, escrow, or specialist couriers.

If you manage digital or tokenized assets, explore Bitget Wallet and Bitget custody solutions to avoid physical shipping entirely. For all shipments that go forward, document everything, use professional packing, demand signature-on-delivery, and obtain a Certificate of Insurance that explicitly covers negotiable instruments.

Further reading and verification: consult UPS Capital/InsureShield product documentation, The UPS Store Pack & Ship Guarantee materials, UPS cargo and declared-value pages, and your transfer agent’s official guidance. Obtain written insurance confirmation before shipping.

More practical advice and custody options are available through Bitget’s help center and Bitget Wallet documentation—explore Bitget features to reduce reliance on postal shipping for valuable or negotiable assets.