How important is your domain to you? If you own a company, it can be likely that it’s very important. If you own a personal blog, you may just really like the name. But what if one day you went to your site and all of a sudden saw some random other site?

Jay, from Domain Tools, has deciding he’s going to offer a new one-of-a-kind service for domain owners. Domain Insurance. My first thought when I read this was, “What idiot thought this up?” I really like the Domain Tools services, I use the Whois service on a daily basis. I like some of the sneaky services they offer, too, like the Reverse IP lookup, so you can look up every website on a competitor’s server. To me it feels like you’re evil if you’re paying for a service like this, but back when it was free I think I used it from time to time. I even used it a few times to see who was still using my server.

But is a domain name so valuable that you have to insure it? With registrar lock and the mandatory authorization code it’s can’t be that easy for someone to steal your domain name, can it? Apparently it happened enough to make Jay mad enough to do something about it. At this point, after offering domain services for 5 years, I’ve never had a domain hijacked.

There are a lot of questions about who will be underwriting these policies and of the possibility of fraud. It may be a service worth looking into if you’re making your millions from your domain name, but it feels like a waste for the domain savvy to me.