does insurance cover the cost of shipping the item, too?

someone from columbia wants to have a $49.99 item covered by insurance when it ships. will insurance cover the cost for shipping if something happens? and if so, just one way or will it cover the cost to have it shipped back to me? and do they purchase insurance at the $49.99 price or the "next level" price (which adding the insurance would bump it up to)? please advise. thanks!
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