UPS shipping policies on insurance leave a lot to be desired. I sold a Music Hall turntable to a fellow and shipped it from a nearby Office Depot, which had a UPS counter. During shipping a rod from another package puncture my box and damaged the cover on the turntable. Following UPS guidelines, I had the buyer notify UPS so they could return the turntable to me for the claim.
The damage was not severe, but the turntable was no longer in as-new condition. At the time UPS did not repair electronics. Instead they would offer to settle for the replacement value and then destroy the item (to discourage fraud apparently).
During the filing process, I learned that the claim had to be submitted by Office Depot. According to UPS, they were the shipment "owner" and I could not submit a claim independently. If the claim was approved, they would pay Office Depot and the local store manager would be responsible for sending me a check.
Luckily for me, the local manager was a decent guy and cooperated fully during this hassle fest. In the end I received a check, the slightly damaged turntable went to a recycler, and the fellow who made the original purchase received his purchase price back (but no turntable).
If you're lucky, FedEx will be easier to deal with.
Steve