Insurers starting to reimburse for digital content

One of the main problems with the gradual transfer of content from physical media (CDs, DVDs, books) over to digital media (MP3s, movie downloads, e-books) is that when something happens to the devices storing your swag, you're basically out of luck -- most insurance companies will tell you to go take a hike. Well that's all about to change, according to a recent article in British newspaper The Independent, as insurers like Nationwide will now reimburse you for digital content stored on stolen or destroyed electronics as long as you can provide proof of purchase. Nationwide's even got your back for such seemingly trivial fare as games and ringtones downloaded to your cellphone, though its policies specifically state that if you lose your digital goods due to a wiped hard drive / memory card that's your own damn fault, and there'll be no reimbursement for you. Unfortunately some insurance companies -- like the cheapskates at esure -- seem dead set against the idea, claiming that owners of a stolen iPod still have the tracks on their PC and don't deserve digital coverage; well, while that may be true in cases of theft, esure's stance isn't very helpful for the unlucky individual whose house just burned down and whose DAPs and computers have all melted into the floorboards.

[Via Techdirt]

[L @ Sep 11th 2006 5:32PM]

If your house burns down, your music collection should be the least of your worries.

[Josh @ Sep 11th 2006 5:38PM]

Oh man, is that the new iPod they're announcing tomorrow? Where can I give them my credit card info?!

New Shuffle form-factor!!!111

[Will @ Sep 11th 2006 5:52PM]

I don't understand why Apple (or what ever online music vendor you use) can't just let you re-download your lost tracks? especially if your reason for loosing all your music is your Apple hard drive failing.

[kalmbach @ Sep 11th 2006 5:57PM]

They've got it all wrong. I use an iPod so that I don't have to store music on my PC. What's the point of an over priced external hard drive if you still need a copy on your internal hard drive? Apple needs to re-design their service, or I'm out.

[Roopesh Sheth @ Sep 11th 2006 6:18PM]

The real issue with this discussion is that too many people have Apple on the mind. Change your mindset (and vendor) and this becomes a moot point. Napster, Yahoo, even URGE, allow you to download multiple times to multiple PCs and download again if you have any issues.

Of course, this only applies to your digital audio assets. Agreed that for other digital assets (eBooks, video, potentially, love the downloaded phone assets example) need to be covered.

[Chocolate Starfish @ Sep 11th 2006 6:21PM]

When I started buying music from MSN music, I read a bit of policy that said they would allow you to re-download your collection in cases where everything is lost, including wiped hard drives. It was one reason I chose them; that and an ignorance of DRM at the time. Perhaps both reasons have changed since then.

[matchmaking service @ Sep 11th 2006 6:21PM]

Was this a plug for Nationwide insurance? Or do people hope that by pretending like it's a big deal that other insurers will follow suit?

I definitely am happy to hear that insurers are going to cover it, but since when did people have to pay to download the same thing twice? Do the music companies really have such a death grip on us? Or are the american people willing to spend more and more on their grotesquely pathetic stars.

We should have never allowed music companies to stretch this information boundary.

Gone are the days when music stars had to actually work for a living. As if it's that hard. U2 pulled in $140 million and Rolling Stones pulled $160 million in 2005.

Besides, charging other people to play your music is unheard of. Beethoven didn't have the police go around and take money from minstrels! If he wanted to earn money he played in a concert!

[RichardC @ Sep 11th 2006 7:13PM]

If your house burns down along with everything inside, you're covered under replacement insurance.

You can also add the actual devices to your home insurance policy, in the same way you would add jewelry. Yes, this doesn't protect the digital content if the hardware id damaged/lost/stolen, but at least your iPod itself is protected.


People are missing the big picture here though: BACKUP YOUR STUFF!! With the price of harddrives so cheap today, there's no reason you can't go out and buy a copy of Ghost and duplicate your harddrive from time to time.

[Blue Sam @ Sep 11th 2006 7:22PM]

it's not real iPod.

[CRANK @ Sep 11th 2006 7:30PM]

Well I steal all my media from LIMEWIRE so I am NEVER OUT OF LUCK.
I've made it really hard for the FEDS to even bother tracing me simply because I have a laptop and I WIJACK from neighbors and restaraunts.

I don't pay for digital content or braodband access.

[deepb @ Sep 11th 2006 7:48PM]

This is stupid; the potential for fraud and dishonesty is astronomical. How can the insurance company know if you really did just lose your _only_ copy of something? People are already committing fraud with physical assets - now that it's even easier for them, it's obvious they'll continue to do so.

If the music industry is serious about stopping piracy, they need to move to a strict license model. Losing your iPod means very little - the insurance company pays you for the iPod and for the cost of copying the files from a third party (but not for the original price of the _license_). Now that the insurance companies are the ones double-paying for personal music licenses, hopefully something will change.

[deepb @ Sep 11th 2006 7:51PM]

To clarify, I was referring to the way things should be, not how they are. The insurance company _should_ pay you for your iPod and the cost of reacquiring the digital assets (but not relicensing).

[Piz @ Sep 12th 2006 11:08AM]

Travelers was the first and still is leading the pack when it comes to digital content management/protection via insurance. Check out their site.