Big companies such as Verizon, AT&T, Sprint, Clearwire and some others offer insurance to their products through third party companies. They charge their customers a minimum monthly charge to protect their equipment against loss, theft and damage. Just a silly example, asurion. http://www.asurion.com/replace/phone-insurance/
Claims limit. For example, depending on your carrier, two claims within any consecutive 12 months with a maximum device value of $1500 per occurrence. I had it before, I was paying $4 monthly and got my phone replaced when it was stolen. It saved me a lot of money. Not advertising any company, but the great benefit out of it. There is no huge investment just the initiative from koodo to open a relationship with any insurance company.