I just Googled “Bitcoin Insurance” and got a few results on existing BTC insurance. They are not wide spread, and delimit the scope rather narrowly as one would expect, but it’s not quite uncharted waters.

Corporations such as Exchanges tend to have insurances of some sort (up to a certain capped amount), and some seemingly have resorted to them when they were hacked, in order to cover the event. A large hack would probably meet the maximums easily and leave the Exchange tits-up trying to recover.

I came across one that covers individuals (there seem to be some timid attempts), and it goes on about insuring your BTCs (and other alts), stating that it covers stuff like loss of wallet keys, proven hacks by means of brute force, cyber attacks, phishing, trojans amongst others. The catch is that it will only cover you if you use a specific wallet (and probably a ton of clauses).
See: https://www.coincover.com/theft/bitcoin-insurance

None will probably cover sending BTCs to the wrong address.