Should I refund the buyer when they tell me their shipment is lost or damaged?

DO NOT REFUND THE BUYER UNTIL THE CLAIM IS SETTLED! The insurance company will require a signed statement/affidavit from the buyer indicating loss or damage. If you refund the buyer they no longer have any incentive to assist you in the claim process and your claim may not get completed. We understand that your buyer may file a PayPal chargeback or eBay complaint, however, in order to complete your claim you should not refund them until the claim process is complete.