3Cover is priced from £5.99 a month for mobiles and from £3.49 for broadband modems and will be available in store.
The insurance sales will be handled by 3 and its sub-contracted agents. Policy administration, claims handling and fulfilment are provided by LSG. 3Cover aims for 48-hour replacement (following claim acceptance) and cover against:
Ian Pillinger, Head of Insurance Products at 3, said: "LSG's mobile phone industry experience and expertise make them the right partner for 3 as we look to provide a comprehensive insurance offering to our customers. The scale of LSG's operation allows us to develop a range of offers, confident that the infrastructure is in place to deliver them for our customers."