Insurance for cloud - is it a liability or a benefit?

As Cloud Pro reported last week, the introduction of liability insurance for Cloud Service Providers is a move towards offering higher levels of data assurance to end user clients. The Cloud Industry Forum (CIF) has warned against business factoring the provision of such insurance into the CSP selection process too heavily, pointing out that ultimately it is the end user who must take responsibility for their own data. I'd go even further, and suggest that cloud insurance provision could actually be a liability and as such shouldn't be part of the selection process at all.