Your buyers should have been charged for these insurance policies given that your did not specify insurance as "Included in S&H". I suspect you are referring to Paypal's payment details that do not reflect the insurance costs. Since Paypal's API does not allow 3rd parties to submit insurance costs to them, we must lump the insurance cost in with the shipping cost. If you view the payment details using the "Checkout Details" links on your Auctiva "Transactions" page, you should be able to see what your buyers were charged for insurance.
The reason you are earning money by offering Auctiva Shipping Insurance is because you are receiving more from your buyers than Auctiva is charging you for these policies. For example, for a $50 policy, you will receive $1.30 from your buyer, and Auctiva will charge you $1.05 for that policy, leaving you with 25 cents of additional revenue. For a $100 policy, your buyer would be charge $2.20, and you would be charged $1.70 for the same policy, leaving your with 50 cents of additional revenue from that insurance sale. The amount of revenue shared with you, the seller, continus to increase by 25 cents for each tier on the insurance rates chart the policy amount climbs.
I hope this clears things up
For further assistance with this matter, please file a support request using the appropriate link on our help page:http://www.auctiva.com/free_auction_software_help/help.aspx
-Mike