>>>Why is that?

While the seller can ask the buyer to pay for the insurance, the seller simply can not pass along his risk/responsibility for delivering the item. This is a VERY common misconception.

Even if the buyer is foolish enough to pay the insurance, he can't file the claim since he isn't the insured party. Think about that.

Most major credit cards and Paypal offer online payment protection meaning that if the item isn't delivered they will credit your account and charge the seller. No questions asked. Why? It is simply the seller's responsibility to deliver the goods.

This is exactly why 1) I never pay for insurance since I have nothing to insure and 2) I don't generally bid on auctions that require a check or money order.

If a seller wants to protect himself, HE/SHE can buy the insurance or ship by alternate means and adjust their price accordingly. Trying to pass the risk of delivery to the buyer is nothing but a con game. Such a practice is completely without any merit whatsoever and has no basis in common business practice or law.