What you're not allowed to charge Insurance: You can't charge a separate fee for insurance, although you still need to make sure your item arrives as described

I always thought that seller can send items with AP insurance, with the charge being included in the postage, just as registration is.  I thought that what they are not allow to do is to say "pay $2 extra for insurance"  meaning they will keep the $2 but will cover damage; obviously that is not on, as they have to cover damage anyway.  I think the wording of that rule was that seller cannot "self insure".

But of course, AP insurance is only for loss and damage as long as they deem the parcel parcel "adequately packed".