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The recipient should be able to refuse shipment on it if the exterior of the shipping box looks obviously damaged. Insurance should be better able to cover it in that case, because it's obvious that it was UPS at fault.
Rule of thumb:
If you ship UPS, package it extra-well, box in a box if you can, with extra packaging material. The extra few bucks it will be to ship is worth the peace of mind.
I recommend Fedex personally.
As a fedex driver myself. I advise you to write in marker Computer Case Fragile if its a unmarked box. I always treat those boxes a little better then the rest in my truck when I know they have cool/nice things in them. Also dont let them pack your box waste of money IMO. Just check around your local stores for free boxes and packaging crap. You can always find a box that a little bigger and cut it down to size.