What Royal Mail owes you
If you post on a Royal Mail business account, lost and damaged parcels carry compensation. Most small shops never claim it. The rules are strict and the deadlines are short, but the money is real. This guide covers the services small shops use most.
How much Royal Mail pays
| Service | Most it pays | Claim opens | Deadline |
|---|---|---|---|
| 1st and 2nd Class (on account) | £20 | 10 working days after the due date | 80 days from posting |
| Signed For 1st and 2nd Class | £20 | 10 working days after the due date | 80 days from posting |
| Tracked 24 and Tracked 48 | £150 | 7 working days after the due date | 30 days from the eligible claim date |
The £20 cover for Class and Signed For items applies on most business accounts. Check your own contract, as account terms can differ.
The deadline most shops miss
Tracked 24 and Tracked 48 claims must be made within 30 days of the date the claim becomes eligible. Other services allow 80 days from posting. A Tracked parcel can become claimable and then unclaimable inside five weeks, without anyone noticing.
When you can claim
Royal Mail won't accept a loss claim until the parcel is properly overdue: 10 working days after its due date, or 7 for Tracked. Working days are Monday to Saturday, not counting bank holidays. Claim too early and the claim is rejected. Claim too late and it's gone.
Cost price, not sale price
Royal Mail pays what the item cost you, not what your customer paid. Royal Mail's own example: a shop buys jeans for £15 and sells them for £25. If they're lost, the shop can claim £15. Claim the sale price and the claim can be rejected.
What Royal Mail asks for
- Sender and recipient details, the service used and the tracking or barcode number
- The date and place of posting
- Proof of cost price, in pounds sterling
- For damage or missing contents: photos of the item and its packaging
Why claims get rejected
- Filed before the claim window opens, or after it closes
- Valued at sale price instead of cost price
- Missing proof of cost, or missing photos for damage
- The wrong service chosen on the claim form
Royal Mail usually responds within 30 days. Bulk claims of up to 500 parcels go in on one spreadsheet, which is how we file them.