Yes, if you have hardware and data in your colocation space you need to protect both items. What would happen if you lost everything? That is what insurance is for. A datacenter will have very good insurance on the building and to protect the center but in most cases the individual clients should protect their property. Insurance costs will vary depending on if you are protecting hardware or a $100 million dollar idea so talk to an insurance provider to confirm you have what you need. Just remember that if you really have data or equipment that needs $100 million coverage (example) then I'm guessing you have multiple locations, redundant equipment, and an entire team of security professional and IT staff working with you to protect your investment. In a good datacenter you won't have any issues but always prepare for a rainy day and when dealing with a company and people lives you should think of insurance since the cost is really quite low.