UPS or FEDEX only insure jewelry for 500$ max, what dealers or large companies do is use third party insurance that insures that the courier will do their job and deliver the package.. these third party insurance companies are usually only for businesses as they actually use the service quite often and the scam rate would be low.. to people that dont ship much i always suggest you go to a local watch dealer you have dealt with and maybe ask them to ship using their services..
im sorry to hear about the loss, best of luck in the future while shipping such items..
btw the third party companies also say to never declare the item as watch, and never to declare the full amount to avoid people seeing that and wanting to take it