Last updated: June 13, 2026
These Package Protection Terms (the "Terms") are a binding agreement between MILKYWAY X, INC. ("Milkyway," "we," "us," or "our") and the merchant that enables Package Protection and submits a Delivery Request through the Milkyway platform (the "Merchant," "Sender," or "you"). By enabling Package Protection and paying the applicable fee, you agree to the terms below. Capitalized terms are defined in Section 11.
Package Protection is not insurance. It is a flat-fee contractual reimbursement service offered directly by Milkyway. Milkyway is not an insurer or insurance provider, and enabling Package Protection does not create insurance coverage of any kind.
1. Nature of the Service
Package Protection is an optional, limited contractual reimbursement service offered directly by Milkyway in exchange for a flat service fee.
Package Protection is not insurance. It is not an insurance product, surety, warranty, or guarantee of delivery, and Milkyway is not an insurer, insurance producer, or insurance provider. Package Protection does not insure the Merchant, the Receiver, or any package, and it creates no insurable interest, regulated insurance product, or insurance coverage of any kind. It is solely a direct contractual promise by Milkyway to reimburse a Merchant's documented loss, on the terms and within the limits stated in these Terms, in exchange for the flat Package Protection Service Fee.
For clarity: these Terms refer to this contractual agreement, not to insurance. Terms such as "protect," "protection," "Package Protection Service Fee," and "Reimbursement Request" refer only to this contractual reimbursement service and the process for requesting reimbursement under it. They do not refer to insurance, an insured loss, an insurance premium, or an insurance claim.
Package Protection applies to a Delivery Request only if (a) the Merchant affirmatively enables Package Protection for that Delivery Request, and (b) the Package Protection Service Fee for that Delivery Request is paid at the time the Delivery Request is submitted. The Package Protection Service Fee is a flat $1.99 per Delivery Request, regardless of the number of packages or items in that Delivery Request, and is non-refundable, including where a Reimbursement Request is denied or no Reimbursement Request is filed.
2. Reimbursement Amount and Valuation
For an eligible, approved Reimbursement Request, the reimbursement amount equals the lesser of the following, and in no event more than $500 per Delivery Request:
- the Merchant's documented cost of goods (COGS) for the affected item(s), supported by a supplier invoice or purchase record;
- the Declared Value entered by the Merchant at the time the Delivery Request was submitted;
- the protection limit of the Merchant's then-current Milkyway subscription plan; and
- $500 USD per Delivery Request (the absolute maximum, regardless of plan, Declared Value, or the number of packages or items in the Delivery Request).
Reimbursement is limited to the physical contents of the package. It excludes taxes, shipping and delivery fees, duties, discounts, markups, retail margin, restocking costs, and any consequential or indirect loss. Milkyway does not reimburse the cost of the delivery service itself. Item(s) for which no Declared Value was entered at the time of the Delivery Request are ineligible.
3. Eligibility Conditions
To remain eligible for reimbursement, all of the following must be true.
Declared Value. A Declared Value was entered for the item(s) at the time the Delivery Request was submitted.
Secure packaging. Item(s) were sealed, cushioned, and packaged to industry standard for last-mile transit. Reimbursement Requests arising from thin-walled boxes, insufficient padding, or unsealed packaging will be denied.
Eligible item. The item is not a Prohibited or Excluded Item (Section 6) and its Declared Value does not exceed $500.
Accurate information. The Provided Address, Declared Value, and shipment details were accurate and complete.
Secure delivery instructions. The Merchant provided clear, actionable delivery instructions where required (Section 4).
4. Secure Delivery, Safe Drop-off, and Public-Area Exclusion
To qualify for reimbursement, the Merchant must provide clear, actionable instructions for a secure delivery. To the maximum extent permitted by law, Milkyway and its third-party Drivers are not responsible for theft, loss, or damage in the following circumstances.
Missing instructions. The Merchant failed to provide explicit instructions for a Safe Drop-off Zone (for example, a gate code, a specific desk, a mailroom, or a concealed placement location).
Public visibility. The only available delivery point is a main entrance, external gate, sidewalk, lobby, or other area visible to the public in a high-foot-traffic zone, and the Merchant did not provide a Safe Drop-off Zone. In that case the Merchant acknowledges that delivery to that point is at the Merchant's own risk.
Effect. Where the Merchant did not provide a Safe Drop-off Zone or secure access method, the Merchant authorizes the Driver to leave the package at the most accessible point at the Provided Address, and the Delivery Request is ineligible for reimbursement if the package is subsequently stolen, tampered with, or damaged by weather.
Preserved eligibility. This exclusion does not apply, and a Reimbursement Request remains eligible subject to the other terms of these Terms, where the Merchant provided a secure access method or Safe Drop-off Zone and the Driver did not follow it without the Merchant's approval.
5. Safe Harbor: Photo Proof of Delivery (PPOD)
Milkyway's responsibility for a package terminates upon Successful Completion of the delivery.
Finality. A delivery is Successfully Completed when the Driver uploads a Photo Proof of Delivery (PPOD) showing the package at the Provided Address, recorded with the Delivery Timestamp.
Transfer of risk. Once a valid PPOD is uploaded, all risk of loss or theft passes to the Merchant and the Receiver. Milkyway does not reimburse for theft occurring after a documented Successful Completion (commonly, "porch piracy").
Exceptions. This safe harbor does not apply where the PPOD shows delivery to an incorrect address or unit, or where the Driver materially deviated from the Merchant's delivery instructions.
No PPOD. If no PPOD is uploaded, the delivery is not Successfully Completed, and an otherwise eligible Reimbursement Request for loss may proceed based on the evidence in Section 7.
6. Prohibited and Excluded Items
The following are never eligible for reimbursement, regardless of whether the Package Protection Service Fee was paid, and may not be shipped through the Milkyway platform where prohibited by the Prohibited Items & Community Guidelines:
- currency, cash equivalents, gift cards, and negotiable instruments;
- jewelry, watches, precious metals, and gemstones;
- hazardous materials;
- any item with a Declared Value exceeding $500; and
- any item identified as prohibited in the Prohibited Items & Community Guidelines.
Package Protection also does not reimburse loss arising from delay, missed delivery windows, spoilage, temperature sensitivity, perishable degradation, lost sales, chargebacks, customer dissatisfaction, or any other consequential or indirect loss.
7. Reimbursement Requests
A "Reimbursement Request" is a request for reimbursement under these Terms. It is not an insurance claim.
Deadline. Reimbursement Requests must be submitted to support@milkywaydelivery.com within three (3) business days of the Delivery Timestamp. For a package that is never delivered (and therefore has no Delivery Timestamp), the request must be submitted within three (3) business days of the scheduled delivery date.
Required evidence. A Reimbursement Request must include all of the following:
- a copy of the cost invoice or purchase record establishing COGS;
- photographs of the damaged item and its packaging (for damage requests); and
- written confirmation from the Receiver that the item was not received or arrived damaged.
Review and decision. Milkyway may request additional information and will evaluate each Reimbursement Request in its reasonable discretion against these Terms. Milkyway will notify the Merchant of its decision after review.
Payment of approved requests. Approved reimbursements are paid within ten (10) business days of approval, by the method Milkyway reasonably designates.
8. Limitation of Liability
The limitations in this Section 8 apply except to the extent prohibited by applicable law or arising from Milkyway's gross negligence, willful misconduct, or fraud.
8.1 Sole and exclusive remedy. Reimbursement under these Terms is the Merchant's sole and exclusive remedy for any matter relating to the loss of or damage to a package handled through the Milkyway platform. To the maximum extent permitted by law, Milkyway is not liable for any indirect, incidental, special, punitive, or consequential damages, including loss of business, loss of profits, loss of goodwill or reputation, or taxes.
8.2 Assumption of risk where Package Protection is not active. Any Delivery Request submitted without Package Protection enabled and the $1.99 Package Protection Service Fee paid is sent at the Merchant's sole and absolute risk. Where Package Protection is not active, Milkyway has no financial responsibility for the contents, and no reimbursement of contents or delivery fees will be issued.
8.3 Maximum aggregate liability. Where Package Protection is active and all conditions are met, Milkyway's total aggregate responsibility for a Delivery Request is strictly capped at the reimbursement amount calculated under Section 2, not to exceed $500 USD per Delivery Request.
8.4 Prohibited and Excluded Items. Milkyway has no responsibility for any Prohibited or Excluded Item under Section 6, regardless of whether the Package Protection Service Fee was paid.
9. Fraud, Abuse, Subrogation, and Indemnity
9.1 Accuracy and anti-fraud. The Merchant is responsible for the accuracy of all Declared Values, addresses, and evidence submitted. Milkyway may deny any Reimbursement Request, and may suspend or terminate a Merchant's access to Package Protection, where it reasonably determines that information was inaccurate, inflated, or fraudulent.
9.2 Subrogation. To the extent Milkyway reimburses a Merchant for a loss, Milkyway is subrogated to the Merchant's rights of recovery against any third party responsible for that loss, and the Merchant agrees to reasonably cooperate with any such recovery.
9.3 Indemnity. The Merchant agrees to indemnify and hold harmless Milkyway from claims, penalties, fees, and expenses arising out of (i) shipment of Prohibited or Excluded Items or unlawful items, (ii) inaccurate Declared Value or shipment information, or (iii) the Merchant's failure to comply with these Terms.
10. General Terms
10.1 Governing law. These Terms are governed by the laws of the State of California, without regard to its conflict-of-laws rules. The Federal Arbitration Act governs the interpretation and enforcement of Section 10.2.
10.2 Arbitration; class waiver; jury waiver. Any dispute arising out of or relating to these Terms will be resolved by binding individual arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, seated in Los Angeles, California. The Merchant and Milkyway each waive any right to a jury trial and any right to bring or participate in a class, collective, or representative action. Either party may bring an individual matter in small-claims court instead of arbitration if it qualifies. The arbitrator decides all issues except that a court of competent jurisdiction decides the enforceability of the class-action waiver. If the class-action waiver is found unenforceable as to any matter, that matter proceeds in court and the remainder stays in arbitration. Arbitration fees are allocated under the applicable AAA rules.
10.3 Opt-out. A Merchant may opt out of Section 10.2 by emailing support@milkywaydelivery.com within 30 days of first enabling Package Protection, stating its intent to opt out. Opting out does not affect any other term of these Terms.
10.4 Force majeure. Milkyway is not responsible for any failure or delay caused by events beyond its reasonable control, including natural disasters, severe weather, civil unrest, labor disputes, carrier or network outages, and acts of government.
10.5 Severability. If any provision of these Terms is held unenforceable, that provision is modified to the minimum extent necessary or severed, and the remaining provisions stay in effect.
10.6 No waiver. Milkyway's failure to enforce any provision is not a waiver of its right to do so later.
10.7 Assignment. The Merchant may not assign these Terms without Milkyway's prior written consent. Milkyway may assign them freely.
10.8 Entire agreement. These Terms, together with the Milkyway Terms of Service and Prohibited Items & Community Guidelines, are the entire agreement on Package Protection and supersede prior understandings on that subject. If these Terms conflict with the Terms of Service on the subject of Package Protection, these Terms control.
10.9 Changes. Milkyway may amend these Terms at any time in its sole discretion. Updates are posted on this page with a new "Last updated" date. The version in effect when a Delivery Request is submitted applies to that Delivery Request. The Merchant is responsible for reviewing the then-current Terms before each Delivery Request.
11. Definitions
- Merchant / Sender: the business customer submitting the Delivery Request.
- Receiver: the intended recipient listed on the Delivery Request.
- Driver: an independent third-party courier who performs the delivery.
- Delivery Request: a delivery service request submitted through the Milkyway platform.
- Package Protection Service Fee: the flat, non-refundable $1.99 service fee paid to enable Package Protection for a Delivery Request.
- Reimbursement Request: a request for reimbursement under these Terms. A Reimbursement Request is not an insurance claim.
- Declared Value: the value entered by the Merchant at the time the Delivery Request is submitted.
- Provided Address: the delivery address submitted in the Delivery Request, including apartment, suite, or unit number, and any delivery instructions.
- Safe Drop-off Zone: a location or method reasonably intended to reduce theft or damage, such as a gate code, concierge or front desk, secure mailroom, lockbox, concealed location, or specific placement instructions.
- PPOD (Photo Proof of Delivery): a delivery-completion photo captured in the Milkyway workflow and associated with the Delivery Request.
- Delivery Timestamp: the date and time recorded in Milkyway's system when the delivery is marked complete.
- Successfully Completed / Successful Completion: a delivery confirmed by a valid PPOD and the Delivery Timestamp, subject to the exceptions in Section 5.
- Prohibited or Excluded Item: any item listed in Section 6 or in the Prohibited Items & Community Guidelines.
Questions: support@milkywaydelivery.com