With the exception of certain types of items, FedEx allows one to pay extra for "declared value" greater than $100. Technically, it isn't insurance - though it may seem like it. It sets an upper limit on their liability, but there's no guarantee that they will pay out that amount. If one has sold an item at retail, for example, then FedEx may try to pay out only a wholesale cost for the item if they misdeliver it and it can't be recovered. (Ask me how I know.)

As exorbitant as the additional "declared value" cost from FedEx may seem to you, if you really want to cry, see what the USPS would charge you for the same dollar amount as insurance purchased from them. It's a terrible deal!

Some folks who ship a lot - and want insurance for their packages - obtain it through a third-party provider (U-PIC or Shipsurance, for example). Other folks who ship a lot find it to be a better deal to simply not buy insurance at all - and save enough by doing so to pay out of pocket for the occasional loss - and still come out ahead of the game over the long haul.