ICANN waives insurance requirement for accredited registrars.
ICANN’s board approved a resolution this week to waive an insurance requirement for domain name registrars.
The registrar accreditation agreement requires registrars to carry general liability insurance of at least $500,000, but ICANN will no longer require this.
ICANN has decided to waive the requirement for a couple reasons.
First, the reason for requiring the insurance was to protect registrants. But most general liability insurance policies offer no protections for domain name registrants.
Second, the insurance can be costly in some areas. It’s no big deal in the U.S.; you can get a $1 million policy for under $1,000. But apparently in other places, such as Nigeria, the cost can be over 150 times the country’s GDP per capita.
While most U.S. registrars won’t see much cost savings from this, drop catching companies with dozens of registrars will gladly accept the cost reduction.