About a lost insured package?

I mailed an 82 year old baptizmal dress to my granddaughter for her baby to be baptized in and she never received it. It was insured. There have been 12 babies baptized in it thru the years. Her baby is to be baptized Aug. 21, 2011, and I have given up that it will be found. I have the necessary insured papers. Now what do I do?