how does USPS insurance work? part of package broken?

I insured a $ 100 package sent via USPS. The package conatined 8 glass jars. One jar broke. So will the USPS pay for this broken jar?
How exactly does this work? I read everything on the USPS website, but what about this statement they say:
“Proof of Damage or Partial Loss of Contents
You must retain the damaged item(s), packaging and all contents until the claim is resolved. If you receive notification from the USPS, you will be required to bring the item(s), packaging and all contents to the Post Office.”

How can I retain the damged item when I was the one that shipped it in the first place!?!? The entire package was already shipped, got partially damaged during shpment, and now the item is obviously not with me! So I cannot retain what I do not have.

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