Fedex and UPS do NOT guarantee live arrival. Period. He is supposed to get his shipping refunded if he paid for an early delivery and they didn't make it IF the guarantee early delivery to the receivers location. In many places they do not guarantee early delivery. Paying for insurance to ship a live animal any way other than Delta Dash, or some other airline equivalent is a waste of money.
Actually, fed ex will refund the shipping ONLY if the delay was because of mechanical failure, such as a problem with a plane. They do not refund shipping if the package arrives late because of the weather.