Route insurance is a second layer of coverage over shipments that are sent through USPS, UPS, or FedEx, since the packages are only covered by $100 of liability for undeclared value items by default with the shipping companies. By adding Route, for the cost of $1.15 for the first $100 of product purchased or 3% of the product cost for orders over $100.
Route insurance covers the package while it is in transit, if it is lost in transit, or damaged, and even covers if the package is stolen upon delivery at the recipients place of delivery.
If there is an issue the claim can be filed by the customer or the sender, and is outline Here.