I recently listed an item on *bay. When using the Shipping Wizzard, this message came up at the end:
"Should you insure your shipment?
Depending on the item value, you may want to insure your shipment. Shipping insurance protects you as a seller if your item is lost or damaged during shipping.
You can fold the cost of shipping insurance into the item price; a flat shipping rate; or, if you use calculated shipping, by adding it as the handling cost. You can purchase shipping insurance from your shipping carrier.
Tips:
Insurance is based on the item's estimated final value. View the insurance rate tables for UPS and USPS, and add the amount to your item price, shipping rate, or the handling cost back on the main page.
UPS provides free loss/damage protection for items with a declared value up to $100 for sellers.
Package your item carefully. If your item is damaged due to poor packaging, the shipping carrier may not pay an insurance claim."
So, I guess you can add insurance charge to "handling fee". I didn't think we were allowed to do that.