I have shipped 1-2k packages over the past several years and have some experience w/ UPS and USPS (I don't use Fedex because they are annoying to me, super nit picky and not close to me to pick up and drop off so not convenient).
This is an important point for you Robert... In most of their scanners, USPS has GPS which will show the address they were at when they scanned your package for delivery. I have had items mis-delivered before (by a sub) and my mail lady (who is awesome) checked with her supervisor who looked it up and found the address they had been mis delivered to. She then went back to that address and requested the packages and got them back. In your case, it will require fighting it hard though since it will be out of state.
First point is that I use stamps.com software for printing through the USPS which costs $15/month. However, it let's me use a private insurance company (
PIP) which, with my one experience on a claim with them was a breeze and they covered the work I had performed on my customer's knives.
On my actual claim through USPS (prior to using PIP insurance) it took about 6 months and several appeals to get paid. In fact, I was on the final appeal before I would have no recourse. So keep at it!
My UPS story, which I'm in the process of... I packaged several knives up in a box, then put that box in a padded envelope and shipped UPS ground. My customer received the padded envelope with a bottle of vitamins inside!! One end had been ripped opened and taped back shut. UPS denied the claim stating that I had improperly packaged the knives according to their packaging standards (even though they never asked how they were actually wrapped in sheaths and folding knives in bags preventing opening). UPS Packaging standards do not state that they will deny a claim when packing in an envelope, and they even provide envelopes (UPS express) for shipping.
I called to appeal and once they heard that I had double packed them (in a cardboard box then a padded envelope) the lady overturned the 'ruling'. I may not be so lucky next time - was about to take them to small claims court.
Anyway, take it FWIW. Hope you get your $$!