Item I have sold arrived broken - where do I stand?

[Weasar]

I sold a brand new BBQ on ebay and sent it via courier yesterday. (obviously was perfect when I sent it)
Arrived with buyer today and he has said a supporting plastic part is broken so it can't be used with or without the stand.
He won it at £67, and when I booked the delivery it popped up with this item is only covered up to £xx, would you like to cover up to £67 for an extra 85p, which i did as it was so cheap.
So, hopefully I should be covered via this extra fee.
my question is - presumably the winner will send me the item back, and if I am lucky enough for the courier to pay out the £67, that will only cover the sellers refund, and I am left with a useless item that I can't sell to anyone else?
Plus I assume I will have to cover the sellers cost of sending it back to me?
I have read this on the FAQ's on the website I booked the courier through:

When you are signing for a package you are signing that the delivery has been ?received in good condition?. Once this is signed transit cover is then deemed void. If the external packaging is in good condition then there should be no reason to sign for the package as damaged. A parcel that has sustained damages with no external signs of damage is due to poor internal packaging and is not covered. If the parcels packaging is damaged on delivery please mark ?damaged? on the delivery note. Please be aware that packages marked ?unchecked? will not be accepted for a damage claim.
Obviously the buyer signed for it, so I'm not sure if I can even claim the money back from them - but it's not my fault as I had no control over signing for it!

Am I understanding this correctly, or am I missing something - this seems to be a lose-lose situation to me?
Plus, I dont really have the £67 to refund him before I get it back from the courier company!

The buyer is meant to check the item ( I only know this as dh works away and constantly orders crap really useful things. He is always telling me to write unchecked on the form you have to sign.

Ah just read end of that post it looks like it doesn't matter. Sorry hopefully someone who knows will be along soon.

Poor you, I do sympathise, but the only advice I can give (which doesn't clarify where you stand about the business of the loss to yourself of a saleable item) - would be to ask him/her to send a photo of the broken barbecue - you need to be shown the problem after all.
I hope someone will put you in the picture soon about your own 'loss of goods' situation, and that the insurance will turn out to cover both you and the bidder. Good luck.

Ask the buyer if he could email a photo of the part and say that you will try to get the item replaced by the maufacturer. In the meantime start a claim for damage as although the item was signed for it wasn't unwrapped and checked so I would say you can still claim.

Thanks dotnet That's the first thing I did - ask him for pictures as the way he worded the email was a bit 'meh' like he wasnt that bothered! (strange)
I also said the sooner he could do that, the sooner I could open a case with the courier in order to claim his refund so hopefully he will be prepared to wait a little bit for a refund? (wishful thinking?)

Hi Weasar - let us know how you get on! lesstalkmoreaction's suggestion is a good one. If your barbie wasn't too old there's every chance some kind person at head office will send you a replacement plastic bit so it can be put right. So, see if you can find the head office address and contact them.
If he's reasonable, he should be willing to wait a bit; explain what you'll do, once you have the photos, and with any luck things might sort out without too much rigmarole.