Jubilee and i-Digital launch download insurance

Underwriting agency i-Digital Insurance and Lloyd’s insurer Jubilee have teamed up to launch insurance cover for downloaded content on computers, phones and other electronic devices.

The companies claim the new coverage is the first of its kind.

The policy provides protection against the irretrievable loss of digital downloads resulting from fire, theft, accidental damage and breakdown of the electronic equipment on which the media is stored.

The product will be sold either as an add-on to a home contents, mobile or gadget cover or on a standalone basis.

I-Digital will distribute the new download insurance product on behalf of Jubilee. The product is being offered to underwriting agents and brokers to incorporate into their existing suite of retail products. I-Digital has also launched an online sales service.

The cover has been underwritten by Jubilee’s affinity and special risks team.

Research by i-Digital found that more than 60% of home contents policies do not provide any protection for downloaded material. Of those that did, it was invariably restricted to losses resulting from the theft of equipment in the home and excluded mobiles, travel and breakdown.

The research also found that mobile phone and gadget insurance policies were also left wanting, with an almost universal exclusion for downloads.

“Consumer champions, such as Which? and Defaqto, have been challenging the insurance industry to respond to this rapidly expanding exposure,” i-Digital chief executive James Houlder said in a statement. “The insurance sector has a clear role to play in providing protection, and consumers are keen to see cover available, a fact supported by our own survey. We believe this cover responds robustly to the need and calls for action.”

Jubilee affinity and special risks underwriter Warren Campbell added: “This is an area where our expertise, in partnership with i-Digital’s approach, will provide consumers who regularly download music, books and other paid-for content with a genuinely innovative product delivering peace of mind and protection against their losses.”