Insurance?

There are many things you should have insurance for. Your house, your car, and your life are the big three. What I don't understand is why there is insurance for shipping. If I pay for a package to be delivered in one piece, then shouldn't it be a given that it arrives on time and in one piece? Why do I need to pay an additional fee to make sure they do their job? I can see it, maybe, if you are shipping something worth a lot of money that was also breakable, but for an envelope with paper in it or a small box containing 1 book? I don't think so. Can you imagine if other businesses tried this? "Now that you have ordered your dinner, would you like to add insurance just in case we screw up and bring you cold chicken a hour late?" It gets all over me that movers dare to charge you an insurance fee. Am I not hiring you on promise that you will deliver my belongings back to me and in good condition? Shouldn't they be the ones paying for the insurance? Should I really be the one who foots the bill for your possible incompetence?
Now I probably need to explain where this anger is coming from. UPS has lost one of my packages. I paid for 2 day air to make sure it was here on time. It should have been here no later than Monday. It is now Friday and they are fully admitting that they have no clue what happened to my package. They have also been nice enough to tell me that although they have a state of the art tracking system, it will take up to 8 days to find out where it went. If at the end of 8 days they still don't have a clue, they will start the process of looking into maybe replacing the item. Normally I would laugh it off and go on. I can wait. This time is different because they are in possession of the present I am giving my mother-in-law for her birthday/Mother's Day. We are heading to see them tonight. It is the only chance my sister-in-law will have to see it because after this visit they are moving to China for no less than 2 years with no trips home planned. Every time some customer service rep says they are sorry for any inconvenience I want to yell at them that they can not even imagine the trouble this is causing.
Well, I'm off to call them again. I need to double check that they got my zip code right (one last ditch effort)