Minimize Package Theft: How Small Businesses Protect Shipments and Win Claims

A customer reaches out with a message no shipper wants to receive: “My package says delivered, but I don’t have it.”

Now what?

Before issuing a refund or sending a replacement, you need to figure out what happened. A missing package could have been stolen after delivery, delivered to the wrong location or simply delayed. And each situation calls for a different response.

Package theft can leave small businesses paying for the merchandise and a replacement shipment while also trying to keep the customer happy. The good news? There are steps you can take before and after delivery to reduce the risk.

Here’s how to investigate a stolen package, understand your carrier protection options, document a claim and help prevent package theft in the first place.

Theft, loss or customer dispute? Diagnosing “not received” claims.

When a customer says a package never arrived, start with the facts. Tracking information can help you determine whether the shipment is still moving, was delivered somewhere unexpected or needs further investigation.

Start here every time:

• Check the tracking history. Look for the latest scan, delivery status and any available delivery details. If the package hasn’t been marked delivered, you may be dealing with a delay or lost shipment rather than theft.
• Look closely at a delivered package. A delivery scan doesn’t automatically mean the package was stolen. Check available delivery details and ask the customer to look around the property, check with household members or employees and ask nearby neighbors if appropriate.
• Watch for a possible misdelivery. If available delivery information doesn’t match the intended destination, contact the carrier and begin an investigation.
• Document what you find. Keep the tracking history, order information and customer communications together so you have them if a carrier investigation or claim is needed.

What do I do if a shipped package is stolen?

Start by confirming the shipment status and reviewing the available delivery information. If the package was marked delivered but still can’t be located, gather your shipment records and contact the carrier to determine the appropriate next step. You’ll also need to decide how to get a new product to the customer based on your company’s replacement and refund policies.

A simple process can help your team respond consistently

• No delivery scan → Investigate a possible delay or lost shipment.
• Delivered but can’t be located → Check the delivery details and have the customer check around the property, with others at the location and with neighbors.
• Delivery information points to the wrong location → Contact the carrier about a possible misdelivery.
• Delivery is confirmed but the package remains missing → Gather your documentation and determine whether a carrier investigation, claim or other action is appropriate.

If missing shipments are taking up too much of your team’s time, learn more about how a 3PL can help with small package shipping claims.

Carrier Liability Limits: What UPS and Major Carriers Actually Cover

One of the biggest misconceptions about shipping is that the carrier automatically covers the full value of whatever is inside the box.

That isn’t necessarily the case.

• UPS^® provides up to $100 of protection at no additional charge. Shippers can declare a higher value for an additional charge when they need more protection.
• A delivered-but-missing package needs to be investigated. A delivery scan doesn’t automatically establish what happened to the package or whether a claim will be paid. UPS recommends opening a loss investigation when tracking shows delivered but the package can’t be found.
• Who can file a claim may vary. Depending on the shipment, UPS may allow the shipper, recipient or a third party to start a claim. Some claims may need to be filed by the shipper.
• The Porch Pirates Act could make package theft a federal crime. Introduced in December 2025, the proposed law would make it a federal crime to steal packages delivered by private carriers such as UPS. It has not become law.
• Your shipment value matters. If a package is worth considerably more than the carrier’s standard protection, you may want additional protection in place before it ships.

For more background on carrier protection, see our guides to small package UPS insurance and protecting against damaged shipments.

Shipping Insurance: Another Option for Protecting Your Packages

Declaring a higher value can increase a carrier’s limit of liability, but it isn’t shipping insurance. Insurance is separate coverage that can protect your shipment against covered losses, including theft, depending on the policy.

That distinction can be especially important for high-value packages. Carrier liability is governed by the carrier’s terms and conditions, while shipping insurance is governed by the terms of the insurance policy.

For more information, check out our blog on Parcel Insurance vs Limits of Liability – What Do They Cover?

When Signature Confirmation Is Worth the Cost

Leaving every package at a doorstep may be convenient, but it isn’t always the right delivery strategy. For higher-value or higher-risk shipments, requiring a signature can add another layer of protection. Here’s how:

• It can reduce unattended deliveries. Signature Required directs UPS to obtain a signature at delivery rather than simply leaving an eligible package at the destination.
• It provides additional delivery documentation. A recorded signature gives you more information to work with if the recipient later says the package wasn’t received.
• Adult Signature Required adds an age requirement. UPS requires a signature from someone at least 21 years old and may request government-issued photo identification. This service may also be required for certain regulated shipments.
• You don’t need it on every shipment. Consider the cost of the service alongside the value of the shipment and the potential cost of replacing it.
• Secure pickup is another option. Shipping to an eligible UPS Access Point^® location allows the recipient to pick up the package from a secure location instead of having it left at the delivery address.
• Set clear rules for your business. For example, you might require a signature once an order exceeds a certain value or for products that would be particularly expensive or difficult to replace.

The goal isn’t to add services to every shipment. It’s to use them where the additional protection makes sense. Learn more about UPS Signature Required and other delivery options that can help protect your shipments.

Filing a Theft Claim: The Documentation You May Need

When a package goes missing, good documentation gives the carrier the information it needs to investigate what happened.

Your claim-documentation checklist:

• Tracking number and shipment history
• Invoice, receipt, purchase order or other proof of merchandise value
• Ship-to address and other shipment details
• Available delivery information
• Relevant customer communications
• Photos or other supporting documentation when applicable
• Any additional information requested by the carrier
• Claim or investigation started within the applicable carrier timeline

For UPS lost or damaged packages, UPS says to start a claim within 60 days of the scheduled delivery. Because requirements can vary by carrier, shipment and type of claim, check the applicable carrier rules rather than assuming every claim follows the same process.

How do I file a package theft claim?

Start with the carrier’s investigation process and provide the requested shipment and value documentation. Submit complete, accurate information and respond quickly if the carrier asks for additional documentation.

And don’t wait until the deadline is approaching. Starting the process promptly gives you more time to gather information, communicate with the customer and respond to carrier requests.

Customer Disputes: Policies That Protect Your Business

The carrier investigation is only one part of a missing-package scenario. You also have a customer waiting for an answer. Having a policy in place before a package goes missing makes those conversations much easier.

• Create a clear “not received” policy. Decide what customers should do when a package is missing and explain the process in your shipping FAQ, order confirmation or customer-service materials.
• Start by gathering information. Confirm the order number and delivery address then review the tracking information before promising a refund or replacement.
• Establish replacement and refund guidelines. Your approach may differ based on the value of the order, available delivery evidence and the circumstances surrounding the missing shipment.
• Use available delivery documentation. Tracking information, delivery details and signatures can help you understand what happened before deciding how to resolve the issue.
• Be consistent. A defined process helps your team handle similar situations the same way while still leaving room to address unusual circumstances.

The goal is to take care of legitimate customers without automatically absorbing the cost of every “not received” report.

Prevention Tactics: Packaging, Routing and Delivery Options That Reduce Theft

Claims matter when something goes wrong. But preventing a package from disappearing in the first place is even more practical. There’s no single way to eliminate package theft, but you can make smarter delivery choices based on the shipment and its destination.

• Use discreet packaging. When possible, avoid exterior packaging that unnecessarily advertises expensive or desirable contents.
• Consider secure pickup options. An eligible UPS Access Point location can keep a package from sitting unattended at a doorstep.
• Verify addresses before shipping. Correct address information helps reduce misdeliveries that can initially look like theft.
• Use signatures strategically. Consider Signature Required for higher-value shipments or situations where an unattended delivery creates additional risk.
• Encourage delivery alerts. Timely tracking notifications can help recipients know when a package has arrived so they can retrieve it sooner.
• Build rules into your shipping process. Instead of deciding shipment by shipment, establish when your business uses signatures, additional protection or secure delivery options.

A 3PL can also help you evaluate shipping options, manage carrier relationships and navigate the claims process when something does go wrong.

FAQ: Package Theft for Small Business Shippers