Introduction: Aerospace Shipments Deserve More Than Off-the-Shelf Protection
In the aerospace and aviation industries, logistics is not an afterthought — it’s mission-critical. Every shipment is high-stakes. You’re not just moving parts; you’re protecting the integrity of billion-dollar aircraft programs, military readiness, and passenger safety. Aerospace shipping requires a logistics partner that understands the pressure, the precision, and the price of failure.
With aerospace shipments, you’re often dealing with sensitive avionics, custom-fabricated components, climate-sensitive instruments, or parts bound by ITAR regulations and international compliance rules. A single missed delivery window can halt production or ground a fleet. A minor crack in a calibration component could risk mission failure. These are not hypothetical risks — they’re everyday operational hazards in aerospace logistics.
Unfortunately, many aerospace firms rely on carrier-provided declared value protection — not true aerospace shipping insurance. These policies are riddled with exclusions, low reimbursement caps, and weak claims processes. They weren’t built for you. They were built to limit the liability of parcel carriers.
ShipSimple was created to fill that void. Our aerospace shipping insurance is custom-built for manufacturers, MROs, defense suppliers, and aviation logistics providers. We go beyond the paperwork to offer real risk transfer. That means all-risk coverage, responsive claims handling, tailored underwriting, and logistics-savvy support that speaks your language — from torque tubes to tail assemblies.
We’re not just here to sell insurance. We’re here to help you:
- Maintain aircraft readiness
- Protect high-value shipments
- Avoid supply chain disruption
- Keep customers (and regulators) confident
And we know this isn’t just about money. It’s about uptime, accountability, and trust.
In this blog, we’ll cover:
- Why the aerospace sector faces unique shipping risks
- The limitations of traditional carrier liability
- What to look for in a true aerospace insurance policy
- A real-world case study with a $30,000 payout
- FAQs and next steps to protect your operation
If you’re tired of insurance that vanishes when you need it most, or claim processes that feel like root canals, you’re in the right place. Aerospace logistics is too important to leave to generic solutions.
Let’s break down why more aerospace companies are choosing ShipSimple — and why you should too.
The Unique Risks of Shipping Aerospace Parts and Equipment
Aerospace logistics is one of the most sensitive and value-dense supply chains on earth. You’re not shipping sweaters — you’re moving turbine blades, avionics modules, fuselage parts, or sensitive calibration tools. These aren’t just expensive — they’re often irreplaceable in tight timelines.
Common Risk Scenarios Include:
- Mishandling in transit due to irregular shape or packaging
- Delays from customs due to documentation errors
- Damage due to vibration or climate exposure
- Theft due to declared value and brand visibility
- Regulatory non-compliance causing fines or detentions
- Packaging failures for fragile or custom-engineered components
Real-World Scenario: Cross-Border Shock Damage
An Ontario-based supplier ships a crate of sensitive instrumentation panels to a US maintenance hub. Despite compliant packaging, the crate endures shock damage on a turbulent flight segment. The carrier refuses the claim, citing vague handling disclaimers. ShipSimple covers the full replacement value and facilitates a rapid claim process.
For example, a delayed delivery of a critical engine component can ground an aircraft for weeks, costing airlines hundreds of thousands in lost revenue.
What Most Carriers Don’t Tell You About Their Insurance
Most major carriers — like FedEx, UPS, DHL — offer something that sounds like insurance but really isn’t. What you’re getting is declared value liability. That means they’ll cover only what they admit was their fault, under very specific conditions, and usually for only a fraction of your shipment’s true worth.
Key Limitations of Carrier Liability:
- Liability capped at $100 unless additional declared value is purchased
- Coverage applies only to direct negligence, not third-party handlers or customs
- Excludes damage due to improper packaging, temperature changes, or “acts of God”
- Difficult, time-consuming claims process with a low approval rate
If you’ve ever submitted a claim through a standard carrier, you’ve likely experienced the runaround — long forms, denied claims, and vague reasoning. This isn’t just frustrating. It’s a logistical and financial liability.
“Insufficient packaging” is the most common reason carriers deny claims — even for items packed to industry standard.
What to Look for in Aerospace Shipping Insurance
When evaluating providers, these are the must-have features to ensure your policy actually performs when you need it most:
1. High Value Coverage
ShipSimple policies cover up to $500,000 per shipment as standard, with scalable options for multi-million-dollar loads or recurring contracts.
2. True All-Risk Coverage
Includes:
- Theft
- Damage (regardless of cause)
- Loss in transit
- Climate damage
- Mishandling by third parties or international handlers
3. Tailored Policy Terms
Policies adjust for:
- Temperature-controlled transport
- Oversized or odd-shaped packaging
- Origin/destination risk zones
4. Transparent Claims Process
- Simple online filing
- Dedicated claims agent
- Claims typically resolved in 7–10 business days
5. Documentation & Packaging Guidance
We provide templates, compliance support, and audit-friendly documentation to streamline customs clearance and future claims.
6. Cross-Border Coverage
Our policies extend to all major international air and ground routes, with support for export declarations, HS codes, and ITAR-sensitive shipments.
Why Aerospace & Aviation Companies Trust ShipSimple
Tailored Coverage
We understand the difference between shipping propeller blades and avionics control panels. Your policy reflects your risk profile.
Multi-Carrier Integration
We work with your freight ecosystem — whether it’s Purolator, FedEx, DHL, or your 3PL.
Operational Flexibility
Ad hoc shipments? No problem. Need recurring protection for 50 lanes? We’ll set up a custom agreement.
Live Support
Our aerospace specialists are one call away to help you navigate packaging standards, documentation, or emergency coverage.
Case Study: Preventing a $30,000 Disaster for an Aircraft Parts Distributor
Client Profile:
Ontario-based Tier-2 supplier for mid-sized aircraft OEMs. Specializes in hydraulic systems, mechanical assemblies, and precision actuator kits used in commercial and military aviation.
The Scenario:
The client was contracted to deliver four actuator kits to a maintenance, repair, and overhaul (MRO) facility in Texas. Each unit had a declared value of $7,500 and was being shipped under tight timelines to meet an aircraft downtime window. The shipment, packed in reinforced crates with basic foam lining, was routed through multiple carrier hubs, including a stopover in Memphis.
What Went Wrong:
During transfer at the Memphis hub, the shipment was dropped while being moved by forklift — resulting in significant shock to the container. Upon arrival in Texas, three of the four actuator kits showed external and internal damage. One had a cracked housing; two had alignment issues due to impact. The client filed a claim with the carrier, assuming coverage would be straightforward based on declared value.
Instead, the carrier denied the claim, citing “insufficient cushioning” and pointing to ambiguous wording in their standard liability terms. The client faced not only $30,000 in direct losses, but also a strained relationship with the MRO partner, potential SLA penalties, and a breach-of-contract discussion already underway.
What ShipSimple Did:
Fortunately, this client had already begun using ShipSimple for high-value aerospace shipments. The shipment was pre-insured through our all-risk aerospace policy, which included packaging advisory and transit condition documentation. ShipSimple’s digital claims portal allowed immediate filing, with photo evidence and bill of lading uploaded within hours. Our team assessed the damage, verified compliance with the packaging agreement, and approved the claim.
In just eight business days, the client received a full $30,000 payout. This allowed them to manufacture expedited replacements and maintain delivery obligations with the MRO partner. We also worked closely with the client’s logistics coordinator to revise future packaging standards, introduce shock sensors, and integrate real-time tracking to improve accountability.
The Outcome:
The client retained their supplier rating, avoided SLA penalties, and strengthened the business case for integrating insurance into every shipment. Since the incident, they’ve expanded their coverage with ShipSimple, insuring all outbound shipments above $5,000 in value. They’ve also reported faster resolution cycles and fewer escalated claims compared to previous providers.
Client Quote:
“We thought we were covered until we weren’t. ShipSimple saved our quarter. We now build insurance into every shipment — it’s just smart risk management.”
Cost vs. Risk: Is Aerospace Shipping Insurance Worth It?
Cost: 0.6% to 1.2% of declared value
Sample Math:
- $60,000 shipment → $600 premium
- Carrier coverage → $100 to $1,000 max reimbursement
Risk Without Coverage:
- Lost customer confidence
- SLA breach penalties
- Unrecoverable materials loss
ROI:
One successful claim often pays for your annual premiums.
Insurance isn’t a cost — it’s a resilience strategy.
Conclusion: When Failure Isn’t an Option, Neither Is Insufficient Coverage
If you’re in the business of building, supplying, or maintaining aircraft, you already know: aerospace isn’t just another industry. It’s precision-driven, deadline-sensitive, and risk-intolerant. Clients expect perfection. Regulators demand compliance. And when something goes wrong — a lost shipment, a damaged avionics unit, a misrouted turbine — the consequences aren’t just inconvenient. They’re catastrophic.
That’s why aerospace shipping insurance isn’t a luxury. It’s a mission-critical necessity.
Every day, companies gamble with outdated or incomplete insurance policies — relying on default carrier liability or off-the-shelf policies that were never built for the complexity of aerospace logistics. But let’s call it like it is: carrier liability is built to protect the carrier, not you. It’s full of exclusions, loopholes, and reactive coverage that kicks in after you’ve already lost time, money, and credibility.
At ShipSimple, we’ve engineered something better.
Our aerospace shipping insurance is built around your reality — not generic parcel movement or vague legal templates. Whether you’re shipping jet engine components, flight control systems, temperature-sensitive composites, or classified avionics, your insurance should reflect the value and sensitivity of what’s in the crate.
So, what does that look like in real terms?
- All-risk coverage that covers loss, theft, and damage — not just “acts of God”
- Custom declarations that account for climate sensitivity, special handling, and compliance factors
- End-to-end coordination with 3PLs, carriers, and your logistics team — so no handoff is a blind spot
- Claims processing measured in days, not months
- Support for ITAR-sensitive and defense-grade materials, with documentation to match
We’ve supported aerospace suppliers shipping everything from cockpit electronics to wing assemblies. And we’ve seen firsthand how proper insurance doesn’t just protect products — it protects entire projects, program timelines, and business reputations.
Still wondering if switching to ShipSimple makes sense?
Ask yourself:
- Have you ever lost a high-value aerospace part in transit?
- Have you ever been stuck in a claim loop, trying to prove the carrier was responsible?
- Have you ever had a client breathing down your neck because a delivery delay pushed back a build schedule?
Now imagine those problems… gone.
This isn’t theory. This is what our clients experience:
One customer — a mid-size aerospace parts supplier in Ontario — was burned when a carrier denied their $38,000 damage claim on a CNC-machined actuator. Why? Because the packaging didn’t meet an arbitrary standard buried in the fine print. When they moved to ShipSimple, we helped them revise their packing protocols, adjusted the policy language for clarity, and on their very next claim, they were paid in 8 business days. Full payout. No appeals. No back-and-forth.
That’s not just insurance — that’s operational risk management.
And if you’re shipping into or out of international airports, military installations, or restricted zones, we’ve got you covered there, too. Our aerospace shipping insurance supports cross-border operations, customs documentation, regulatory requirements, and high-security handoffs.
Your logistics don’t stop at the tarmac — and neither does our protection.
Let’s talk numbers.
- Average payout time after approval: 7–10 business days
- Coverage limits: Up to $500,000 per shipment (and higher if required)
- Client retention: Over 90% after their first policy cycle
- Claims approval rate: Well above industry average, because we help you prepare upfront
You don’t get those stats by playing defense. You get them by designing coverage that aligns with what aerospace suppliers actually deal with — tight timelines, high pressure, and zero room for error.
And yes, we know cost matters. But so does value. What’s the cost of a missed delivery window for an OEM aircraft build? Or a repair contract breach because a critical part arrived damaged and uninsured? When you stack the cost of ShipSimple’s tailored coverage against the real-world cost of a single failed shipment, the ROI is undeniable.
This isn’t about scare tactics. It’s about truth: aerospace companies who invest in proper insurance avoid six-figure losses, prevent SLA violations, and build stronger client relationships because they can make and keep promises with confidence.
Our policies don’t just cover your shipment.
They protect your credibility, your uptime, and your ability to keep high-value contracts moving.
That’s why defense contractors, aerospace MRO firms, avionics OEMs, and even Tier 1 suppliers trust us.
We’re not just an insurance vendor. We’re a partner in your supply chain continuity.
And the best part? We make it easy. You can get a quote in under 2 minutes. You don’t need to read through 30 pages of legalese or wait on hold for a broker. You’ll speak with a real human who knows what the hell a pitot tube is — and why it matters that it arrives in perfect condition.
So if you’re ready to stop gambling with weak coverage, here’s your move:
🛡 Get the aerospace shipping insurance built for your world — not theirs.
Click below to get started. Your cargo, your company, and your clients will thank you.
FAQs: Aerospace Shipping Insurance with ShipSimple
Q: Can I get international coverage?
Yes. ShipSimple supports cross-border shipments with compliance documentation and customs risk mitigation. We also provide guidance on customs declarations, commercial invoices, and HS codes to prevent delays at international borders. Our insurance adapts to the complexities of international routes, giving you global peace of mind.
Q: Do I need special packaging?
Yes, we require packaging to meet standards — but we help you get there. We review your packaging specs prior to shipment and advise on upgrades when needed. This ensures your claim is supported and that your cargo is protected in transit.
Q: Can I insure climate-sensitive parts?
Yes. Declare sensitivity upfront and we include this in your coverage language. We account for temperature fluctuations, humidity exposure, and even container dwell times to protect your sensitive aerospace cargo.
Q: Can I insure shipments to military installations?
Yes, including defense and ITAR-sensitive deliveries. We support secure freight lanes, confidentiality protocols, and site-specific documentation. Our underwriters are familiar with government procurement standards and can tailor coverage accordingly.
Q: What types of aerospace and aviation equipment does ShipSimple cover?
We insure a wide range of high-value aerospace components including avionics, engine parts, structural components, flight instruments, drones, and even sensitive tools used in maintenance and repair operations. Coverage extends to both domestic and international shipments.
Q: Can ShipSimple accommodate high-value shipments that exceed standard insurance limits?
Absolutely. While our standard coverage is up to $250,000 (parcel) $500,000 (freight) per shipment, we offer custom insurance solutions and higher limits tailored to the needs of aerospace manufacturers, MROs, and defense contractors shipping highly valuable or sensitive cargo.
Additional Resources
- Shipping Insurance Overview
- Aerospace & Aviation Industry Page
- Get a Quote
- Shipping Insurance FAQs
- Freight Insurance for Electronics
- Aviation Week – Supply Chain Risk
- IATA Guidelines for Shipping Aircraft Parts
- Transport Canada – Aerospace Regulations
- Boeing’s Global Supply Chain Strategy
- ICAO Logistics & Cargo Programs
- UPS Aerospace Logistics Solutions
