...."The recipient has no status as far as the USPS is concerned." ... Dick Staeffler

I don't believe that's entirely true Dick.

When a claim is filed with USPS for lost or damaged merchandise, there is a box to be checked whether the insurance claim payment should go to the sender or to the intended recipient.

As for who pays for insurance ... it depends upon the terms of purchase. If buyers don't agree to purchase insurance then they should not place an order if those are the terms. Why should a seller be obligated to pay for valuable uninsured items sent that the receipient claimed was never received and who didn't want to pay the insurance fee?

Personally speaking, I don't insure (at my risk) on packages to my regular customers that have a value of less than $25. On packages that have a value of $25 or more, I charge accordingly. $1.30 for up to $50, $2.20 for $100. $1 for each additional $100 of insurance ... which is what the USPS charges.