If you are shipping liquor that's worth anything, getting the shipping protection is a must.
No shipping company can guarantee a bump-free journey, and when you are dealing with high-value goods, don't test it. I ordered a $200 bottle, UPS damaged it, and because I purchased the shipping protection that was only $7, Keg-n-bottle handled re-sending the replacement bottle, and all the hassles on the UPS refund processing. If I hadn't purchased the shipping protection, I would've had to both rush to re-order and re-pay upfront for a replacement bottle, while also directly dealing with all of the headache of all of UPS' refund shinanigans, and then wait potentially several weeks for a refund from UPS.
Long story short: save yourself time and energy, and do the shipping protection.