Shipping Protection
A shipping protection program that pays you
Navidium Shipping Protection sells an optional damage/loss/theft add-on at checkout, then gives you the tools to file, resolve, and brand every claim.
100% of collected protection fees
per Navidium's merchant study
What Navidium Shipping Protection does
Navidium Shipping Protection is a Shopify app that lets you offer an optional protection add-on to customers at checkout, covering their order against loss, theft, or damage in transit. When something goes wrong, your customer can file a claim through a self-service portal you control, and you — or automated rules you configure — decide whether to refund them, send a replacement, or issue store credit.
Everything about the program is configurable from inside the app: the price of protection, the look of the widget that sells it, the wording of every email a customer or your team receives, and the entire step-by-step claims journey your customers go through.
The app is built around two halves that work together:
- The Protection Widget — a storefront upsell shown at cart or checkout that sells the protection add-on.
- The Claims System — the tools for filing, resolving, automating, and branding everything that happens after a customer reports a problem.
The business model: why this is almost always a win for you
This is a self-insurance model, not third-party insurance. You collect the protection fee as your own revenue — Navidium does not take a percentage of it. In exchange, you honor valid claims yourself, using the app's tools to refund, replace, or credit affected customers. Navidium's only revenue is your monthly subscription fee; it never shares in your protection revenue or in your claims costs.
This works the same way real insurance underwriting works. The fee you charge is priced above your expected claims cost across your full order volume, so the difference is your margin. Per Navidium's internal merchant study, stores that honor 100% of filed claims still retain, on average, at least 60% of the protection fees they collect. If insurance companies can make money pricing risk this way, you can too — except here, you keep the entire spread instead of handing it to an underwriter.
A note on numbers used elsewhere in this guide: some dashboard figures referenced come from a low-volume test store and aren't representative of a healthy production store's economics. Orders & Dashboard covers the revenue-vs-claims-cost comparison you should actually watch on your own dashboard.