I just finalized details with my Liberty Mutual insurance agent to cover my wife and my two iPhones. One stipulation was that they could not be used for business. It covers all accidents, from losing it, to spilling milk on it, to theft. There is no deductible. They are covering it under a computer equipment scheduled personal property policy. I think they're basically considering it a PDA. They also handle our homeowners insurance. Total cost per year: $20 It actually covers up to $5000 worth of equipment.