Compensation for lost or damaged parcels isn't uniform across Royal Mail, each service carries its own cover limit, and some basic services carry very little at all. If you're selling anything worth more than a few pounds, knowing which service protects you for how much is essential, because the difference between services can be hundreds of pounds on a single claim.
Why compensation limits differ by service
Royal Mail ties compensation to the service you buy, with faster and tracked services generally carrying higher cover. A basic 2nd Class parcel includes only minimal compensation, while Special Delivery and some tracked services cover significantly more as standard. The cover isn't a bonus, it's part of what you're paying for, so it should factor into which service you pick.
Compensation on tracked services
Tracked 24 and Tracked 48 include compensation for loss and damage up to a set standard limit, with the option to add enhanced cover for higher-value items. For most small-to-medium e-commerce parcels, the standard tracked cover is adequate, but you should check the specific figure rather than assuming it covers your full item value.
Special Delivery compensation
Special Delivery carries the highest standard compensation of the mainstream services, which is one reason it's used for valuable or important items. Our Special Delivery prices guide covers both the cost and the cover, but the short version is that if an item's value justifies it, the higher cover is worth the premium.
Basic and untracked services
Plain 1st and 2nd Class, and International Standard, carry only limited compensation, and claiming on untracked items is harder because there's no tracking scan to prove loss. For anything with real value, the marginal cost of upgrading to a tracked service is almost always less than the value of the cover you gain.
How to make a claim
Claims are made through Royal Mail with evidence including proof of posting, the item's value, and for damage, photos of the item and packaging. Keep your proof of posting and any receipts, because a claim without evidence of value will be reduced. Our lost and damaged parcel compensation guide walks through the process step by step.
Time limits on claims
Royal Mail sets deadlines for lodging claims, which vary by service and whether the item was lost or damaged. Missing the window forfeits the claim, so it's worth filing as soon as a parcel is confirmed lost or a customer reports damage, rather than waiting to see if it turns up.
Covering the gap for higher-value items
If your items regularly exceed the standard limits, the options are enhanced cover on the Royal Mail service, or a third-party shipping insurance product. For most sellers, the simplest path is enhanced cover on the services you already use, added at the point of booking rather than as a separate policy.
Frequently asked questions
What is Royal Mail's standard compensation for tracked parcels? Tracked 24 and Tracked 48 include a standard compensation limit for loss and damage, with optional enhanced cover available for higher-value items.
Does 2nd Class include compensation? Basic 2nd Class includes only minimal compensation. For meaningful cover, use a tracked service or add enhanced cover.
How long do I have to claim? Claim deadlines vary by service and loss or damage, but it's best to file as soon as a parcel is confirmed lost or damage is reported, as missing the window forfeits the claim.
Protect what you print
Whether it's a £5 label order or a £500 one, a clean 100 × 150mm direct thermal label keeps the barcode scannable, which is the first step in any successful claim.
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