The Utah Insurance Department has issued a warning to 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, the department said.
“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, Pike said. If these providers refuse to pay legitimate consumer claims, the department may not be able to intervene.
Consumers can check if a company is licensed to sell insurance in Utah by going to https://licenseesearch.uid.utah.gov. Additionally, homeowners’ policies might help cover the theft of an online purchase left on your porch, the department said. This is best for high-value items worth more than a policy deductible.