When you book your package with the UPS the UPS takes the responsibility of your that package in all means and situations unless the package is delivered to the recipient. In a situation, if any loss happens to the package with the UPS then the UPS will be held liable for such loss.
If the cost of the package is worth $100 or up to this amount, then the UPS will compensate the person with the same amount, and no any additional amount over it in the names of anything.
Once the worth of the package exceeds this limit of $100 and the loss happens then you can claim the UPS for the amount up to $50,000 for every such package that exceeds the cost of $100 with some other terms and the conditions.
Along with this loss compensating policy the sender of the goods or the receiver as well may insure the goods that are being delivered by the UPS. It generally happens in the case of big amount shipment from the UPS.