Karen,
Yes, Mary is correct. It is not stuck in NY. This is just the last update you will get because this is the last US destination your package was tracked before it left US soil.
You should insure with ShipSaver. I pay $1.25 for each of my packages and as long as you have the Etsy online confirmation that you shipped through them, you are covered. You do not need to prove anything else. This insurance cost is included in my shipping fee.
90 % of the time, my local post office in LA, California, does not even scan to show that they received my package. It just reads: "Electronic shipping information received" This appears to my buyer that I did not submit it to the USPS at all, when in fact I have had my local carrier pick it up.
However, I am still covered under ShipSaver insurance because I have the Etsy documents to back me up. Hope this helps.