Back when I bought my first iPhone, I asked the AT&T lackey about insurance. You would have thought I asked for free data or something. I knew better than to ask on the next two iPhones I bought, thought they always asked me to buy the Apple Care policy. I never purchased that coverage though. If you have wished for insurance on your iPhone from AT&T rather than Apple, that wish will be made true soon.
AT&T has sent out an update to customers according to MacRumors telling them that as of July 17 they will be able to buy insurance from AT&T on their iPhone with some enrollment restrictions. The mobile insurance will offer the phone against loss, theft, accidental damage, liquid damage, and mechanical or electrical failure.
The insurance for the iPhone is through an external partner company and is $11.99 monthly with a $199 deductible. That is basically paying for the phone again. It’s also worth noting that Apple has in the past replaced damaged iPhones with new ones for the $199 fee.