UPS will only pay a claim up to the limit of their liability and not a penny more. That is a contract entered into by the shipper. I would ask the shipper why they only insured for 1000 when the engine is worth 2500. Did you have an agreement with the builder to except the risk if it engine was lost or damaged to save the additional $ 5.25 insurance cost? If not IMO the builder should except responsibility for, as it turns out, a poor decision.