I have a little bit of talk about people getting themselves collocation insurance. If I start to use collocation will I need to purchase my own insurance?

What sort of coverage are you looking for?

You do not need insurance to colocate. If you want to minimize your exposure to the risks that colocation presents then you should consider insurance for the hardware. I'm not certain what other insurance you could get other than the SLA from the provider.

This article provides a little insight into insurance.

You can take liability insurance which is quite reasonable like $160 for 6 months and it covers upto $3mil of liability and $50K in equipment damages. Farmers is a good choice.

If you are renting a cabinet/cage most colos will require you to have a liability policy. I know in Tx they are about $400 a year for ample coverage. This is so they can let you into the facilities. If you are sending your equipment to the colo you usually aren't asked for Insurance as you aren't allowed in the facility on by the U stuff.

I don't think you would get the total revenue you make from any server covered, but this is something that you should consult with an Insurance company.

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.

When you really think about it paying a few hundred dollars a year to insure your business is a no-brainer. If you are going to house clients in your rack/racks it makes sense to go ahead and get this.

It could be very handy if you make large hardware deals with companies like dell.

It's hard to argue against the value of insurance, unless you are paying far more than the worth of your business. $400/year or so seems very reasonable.

I believe the provider usually handles the insurance.

Its always a good idea to have your liability insurance. I have seen quite a few datacenters that require that. What if your equipment blows up or takes down the network or segment or any other xyz reason.

Some datacenters are requiring colo customers to have insurance. Even if you're not forced to it's a good idea. Things happen outside your control and most, if not all, datacenters limit or indemnify themselves against losses incured by you.

I doubt colo insurance is to expensive.

If your home-made rocket louncher fits perfectly to your rack it doesn't mean you should leave it there...

Seriously, Do you know any precedent when datacenter was affected by missuse of colo-client equipment ?