I had an issue along the same lines with a UPS Store packing service. The store packed a piece of network gear (a metal box with cards), 19-in x 12 x 22 deep, 60-lbs, with barely enough bubble wrap and mostly peanuts.
Well, it arrived severely tweaked and sticking out of the box. I filed a claim, UPS sent two reps to my house to inspect and they determined the packing was inadequate. Of course it was - it's against their own policy to use peanuts for heavy items but all UPS stores do so because it's cheap.
My claim was for the damaged box, as none of the cards were damaged. Since the stores are franchises, the owner insisted I send back the entire unit so he can proceed. I refused since I already had the cards sold for much more than the claim. I told me why did he need it since the UPS reps already made a determination.
He said it was store policy and the insurance company demanded it. Mind you, it is NOT UPS who is responsible, it is his insurance carrier.Why? Because I shipped it under HIS account not mine, as is their policy. That makes me subserviant to HIS insurance policy. If this was a normal UPS shipment under my account with insurance, UPS would be liable.
After much runaround, and after he refused my settlement, AMEX got involved and got me the entire claim and my original shipping charges. Why? Because you can complain about services with AMEX not just goods.
Lesson learned. Do NOT ship under their account, get it in writing that they will use packing material as per UPS guidelines, insist on no peanuts and ALWAYS pay with a credit card, preferably AMEX.
My last experience with another UPS store was different. They did NOT insist on using their account.