Methods and apparatus for checksumming network packets encapsulated according to an encapsulation protocol are described in which a single checksum is performed at the encapsulation layer, with checksum generation performed at the source encapsulation layer and checksum validation performed at the destination encapsulation layer. The packet source and packet destination may be informed by the encapsulation layer that a checksum operation is not necessary for the network packets. By performing checksumming at the encapsulation layer, the method may reduce overhead as checksum computation is initiated once rather than twice as in conventional encapsulation techniques. In addition, checksum algorithms may be used that provide stronger error detection or correction than is provided by standard network protocol checksumming, different checksum algorithms may be selected for different paths according to one or more criteria, and checksum operations may be offloaded to hardware.