This is not insurance, it is straight up gambling. With this setup, you pay out money every month, betting that your server will be either down or full, with odds stacked in the company's favor.

Proper insurance isn't about making money off of something that inconveniences you. It's about ensuring that you can recover from a potentially very harmful circumstance. Car insurance doesn't get you a boat-load of money for getting drunk and running into someone. It uses your money to pay for the repairs and hospital bills of the people you injured. Health insurance isn't to get you rich off of breaking a leg, but to help pay for the hospital bills and physical therapy that follows.

Server downtime does not involve loss, except in some minimal, barely inconvenient way. It is not in any way going to threaten your well being or finances (unless you are a gold farmer, of course). All it does is temporarily block your ability to be entertained in one minor way. This is not something that insurance covers.

Please, before making such comparisons, think about what you are posting, Tumleren.