I am a shipping manager at my work, our company quit ups and went to fed ex.. due to this exact thing, they would almost never pay claims.. always the same thing.. improper packaging, even though it was securely wrapped in bubble wrap or whatever. I had the usps lose my PLV take down widow longbow recently, but they did pay the claim, but as far as I know it has never surfaced. but you are right about ups!! they I guess, feel they can do what they want..
sorry for your loss,but I would be FURIOUS with them..