From the very moment in which the records are loaded into the shipping company's truck, they are responsible for them.
Since the minimum print (even a reprint) of one set of covers is 500 units, the best thing to do is to prevent these problems to happen BEFORE shipping, and/or cover the risk in advance.
Here's a couple of tips which have been collected after many years of experience:
1. Records travelling as groups of boxes are much more exposed to risks of damage than records sealed into a single pallet. If the quantity you wish to order is compatible with this option (e.g. 300 records with 500 covers), to ship a sealed pallet is strongly encouraged.
2. You might ask the sleeves to be shipped into separate boxes, with no records inside, and the records to be packed only into their innersleeves.
3. There is also the option to pay an extra shipping fee and have the shipment insured. Please refer to our customer service for more info.