Yes, gamblers who are much addicted will take it as an opportunity and spend good on gambling without thinking about the losses. Maybe it requires certain restricted framework, terms and conditions so that it could limit them. Everything has got advantage and disadvantage. Maybe this can help the family that is behind the person who has lost all through gambling.
Indeed, insurance are business as well thus they wont enter into a situation where they cant gain anything. But I think its unlikely to have an insurance meant for gamblers, I wonder what could be the terms and condition.
Well if a gambler is worried of possible losses then dont gamble. You should have lot of guts to face the consequences if you happen to lose. Hence we need to be more responsible by controlling ourselves. Insurance is good but whats more better is be a gambler that knows his limit.