Canada Post plays a massive role in the country’s shipping network. It ships over 260 million parcels a year, connecting businesses and customers across Canada, the U.S., and nearly every corner of the globe. With a broad reach and decades of experience, it’s often the go-to choice for businesses shipping anything from high-volume orders to one-off deliveries.
Still, even a reliable carrier can’t avoid the occasional mishap. A damaged or lost package can disrupt operations, hurt customer relationships, and cost your business money. That’s where Canada Post’s damage claims process steps in and gives you a way to recover part or all of your losses.
Before you start filing forms, though, it’s worth getting a handle on the fine print. Canada Post has strict rules about when and how you can file a claim.
In this article, we explore everything you need to know about the Canada Post damage claim/Canada Post lost package refund processes so that you can qualify for refund and file claims successfully.
Understanding Canada Post's Liability
Canada Post offers limited liability on damaged or missing packages, but coverage depends on the service used and the type of item shipped. Here’s what you need to know before filing a claim.
Who Can File a Claim?
Only the sender of the package can initiate a damage claim. If you’re the receiver, you’ll need to inform the sender and ask them to open the claim on your behalf.
Services Eligible for Claims
The package must be shipped using a trackable service like:
- Xpresspost™
- Tracked Packet™
- Registered Mail™
- International Parcel (Air or Surface)
Untracked services are not eligible for compensation.
Time Limits for Filing a Claim
The claim must be filed within the following:
- 90 days from the shipping date for domestic shipments
- 6 months for U.S. and international packages
Delays beyond this window can void your eligibility, even if the package meets all other conditions.
Compensation Limits
If the item was insured, compensation may include:
- The insured value of the item
- The cost of postage
Canada Post automatically includes CAD 100 of coverage with many shipping services. If you purchased additional insurance, the total compensation will be whichever amount is lower among:
- The item’s actual value
- The declared insured value
- The maximum coverage allowed by the service
Exclusions to Liability
Canada Post won’t compensate for:
- Items on the non-insurable contents list (like perishables, glassware, and electronics in damaged or non-compliant packaging)
- Fragile goods are not packed as per Canada Post’s guidelines.
- Goods damaged due to external factors like customs handling or temperature exposure
Review their list of non-insurable and restricted items before shipping to reduce claim rejection risk.
Common Reasons for Damage Claims
Claims are usually filed when a package arrives damaged, goes missing, or has missing contents. If you use Canada Post regularly for shipping, knowing these common scenarios can help you act quickly and recover your costs.
1. Item Arrived Visibly Damaged
One of the most common triggers for a damage claim is when the package arrives with clear signs of impact, like dents, tears, or broken contents. In such cases, the sender can file a claim to recover the insured value and postage cost.
2. Package Contents Were Missing
Sometimes, the box or envelope arrives intact, but the items inside are missing. This usually points to the package opening during transit or being tampered with. Canada Post allows claims in these situations, provided the service used is trackable.
3. The Customer Received a Broken Product
Even when external damage isn’t obvious, the contents inside might be broken due to rough handling during sorting or delivery. If the packaging followed Canada Post’s guidelines, a claim can be filed for compensation.
4. Package Was Lost in Transit
If tracking stops updating and the package doesn’t arrive within the expected timeframe, it may be considered lost. Canada Post allows businesses to start an investigation and file a claim if a package is confirmed missing.
Learn More: Lost Packages: Causes and How to Track Them Down
5. Delayed Delivery Resulted in Spoilage
For temperature-sensitive items, delays in transit can lead to spoilage or unusable goods. While these are harder to claim, if the delay was on Canada Post’s end and the packaging was compliant, the sender may be eligible for a refund.
Steps to File a Damage Claim
1. Confirm Eligibility
Check that the item was shipped using an eligible service and is within the claim window (90 days domestic, 6 months international).
2. Gather Information
You’ll need the tracking number, the sender and receiver’s contact info, the item description, and details of any insurance purchased.
3. Contact the Receiver
Ask the receiver to confirm the damage and share photos of the item and packaging. Canada Post may ask for these later in the investigation.
4. Open a Support Ticket
Visit the Canada Post website and submit a support ticket. Signing in is optional, but it helps track the claim’s progress.
5. Wait for the Investigation
Canada Post may contact the receiver for photos or request that the item be returned for inspection. Once everything’s reviewed, they’ll make a decision and, if approved, process your refund.
Preparing Your Claim Submission
To submit a valid claim, you’ll need to gather a few critical details upfront. These include the tracking number, sender and receiver information, a description of the package contents, and the value of the item. If you purchased additional insurance, include proof of coverage.
What to Expect After Submission
Once a damage claim is submitted, Canada Post begins a structured investigation process to verify the issue and determine eligibility for compensation. Here’s what they’ll do:
- Start the investigation and confirm the package was shipped using an eligible trackable service.
- Contact the receiver to request photos or a physical inspection of the damaged item.
- Review supporting documents (if requested), such as proof of value or insurance.
- Determine eligibility for compensation based on the investigation findings.
- Provide a final decision by the ‘Expected Resolution Date’ for domestic and U.S. claims.
- Issue a refund through the original shipment payment method or by cheque, if applicable.
Common Challenges in the Claims Process
Even when your package qualifies for a claim, the filing experience often comes with friction. Here are some common challenges businesses face:
Strict eligibility timelines
Missing the 90-day (domestic) or 6-month (international) window disqualifies your claim, even when it’s legitimate.
No liability for certain items:
Canada Post won’t cover damages for fragile, perishable, or restricted goods, even with insurance.
The process is time-consuming and manual
Filing requires collecting documents, filling forms, and managing follow-ups is especially difficult when you’re dealing with multiple claims.
Tips for Preventing Future Damage
Shipping damage can’t be eliminated entirely, but a few smart practices can lower your risk and protect your margins.
1. Use packaging that meets Canada Post's guidelines
Avoid loose boxes or light fillers. Choose durable, well-fitted materials that can withstand handling.
2. Double-box fragile or high-value items
Add an extra layer of protection for breakables or electronics, especially if you’re shipping long distances.
3. Label items clearly and visibly
Include clear address labels, “fragile” tags (if applicable), and tracking barcodes to avoid handling errors.
4. Avoid shipping restricted items
Review Canada Post’s list of non-insurable contents to stay compliant and reduce claim rejections.
5. Use claims automation tools to track and manage damage claims
Shipping platforms with automation features can track packages, flag eligible claims, submit documentation, and recover refunds without manual effort.
Optimize Canada Post Damage Claims with LateShipment.com
Canada Post’s damage and lost package claims can help you recover shipping costs, especially when you’re sending high-value items or managing tight customer expectations. That said, the process can be tedious. If you’re shipping hundreds or even thousands of packages each month, it gets hard to track delays, collect documents, and follow up manually.
That’s exactly why we built LateShipment.com.
We automate damage and lost package claims for businesses like yours, saving you time and money. Our platform monitors shipments across carriers, catches over 50 types of service failures, and files claims on your behalf, whether it’s for late delivery, a damaged item, or a lost parcel.
We also offer shipping insurance software that protects your packages with up to $2000 coverage per parcel. You get automated claims management, fast approvals, and full control over what gets insured without adding extra steps to your workflow.
With up to 20% savings on shipping costs and a 100% reduction in time spent on filing claims, LateShipment.com is the easiest way to optimize your shipping operations.
