As far as shipping insurance. Most of the shipping damage I've encountered has been due to poorly packed items. And despite selling the insurance, the shipping companies are reluctant to reimburse for damages related to poor packing.
With computers, it is common to have all items controlled so they won't bounce around in the box, and the whole item surrounded by 2" of foam.
Bicycles seem to cram too much stuff into an undersized box.
Unfortunately it becomes a problem for E-Bay purchases where a buyer purchases an item with the expectation that it will be carefully packed and shipped to arrive intact. And a seller claims it was good when it left their control. Although I've had at least one item that I wondered if it was shipped broken. Why on earth would a seller have packed a power supply loose on top of a glass computer screen?
The OP's item was different since the label somehow wasn't scanning properly, and should have been replaced with a valid label.