The basic rules of sales have been codified in the Uniform Commercial Code (adopted by every State, to the best of my knowledge -- if not, most have). In there are rules governing the risk of loss. The risk of loss depends upon who holds title to the goods being sold. The general rule is that the title does not pass until DELIVERY of the goods to the final destination. That is, the risk is born by the seller until they arrive to the agreed upon point of delivery (the buyer's home in most ebay auctions). You can agree to modify the general rule, but the agreement must be explicit. Postal insurance has nothing to do with the risk of loss. It is insurance for the seller to replace the value of lost goods. The buyer gets absolutely nothing out of it. Saying insurance is optional does not shift the risk of loss. I imagine the reason for this general rule is that the seller could simply not ship the goods and claim the loss fell upon the shoulders of the buyer. In fact, the seller controls everything possible prior to delivery. The buyer controls nothing. The seller chooses the carrier. In effect, the carrier is the seller's agent (good luck trying to enforce that in the case of the USPS though). I can't comment on the effect of your statement in your description, "I cannot be responsible for lost or stolen mail unless you pay for the insurance." I don't know if that would be sufficient to shift the risk of loss. I would word it differently, but it may be effective.

Michael Siskin