Hi Mary--love your hats! I use insurepost, which is basically the same thing. But you need to look at the fine print. There are places and items they don't cover. Your beautiful hats are prohibited items in Italy, as are my dog collars and almost everything else in the world.
http://pe.usps.gov/text/imm/il_008.htm#ep4713921. The insurance may or may not cover you if your package is lost. Most of my overseas sales go smoothly, but there are a few places (Italy, Russia, Brazil) where they just never arrive.
I really hadn't thought about the gift cards not being internationally available. That is a good point, and may limit that problem (at least for now).
We'll see what happens.