End of September, I lost $25k of Dell equipment which was housed at CI Host in Chicago. They aren't kidding when the contract says they aren't responsible for lost equipment. Don't take what they claim for security on their website. If you don't trust what you see when you walk in, DO NOT LEAVE YOUR EQUIPMENT THERE! At CI Host, the security measures they have in place are circumvented by employees for the sake of convenience.
Here's the real kicker! Insurance won't cover the equipment either! Insurance companies don't like covering equipment that are not in your facility. BEFORE YOU MOVE TO A COLO FACILITY, LOOK INTO YOUR COVERAGE!
I'm sorry for your loss. While due diligence is always recommended for any host, colo or otherwise, your real problem here is CI Host.
1) If you had done your own due diligence, you would have found a significant number of horror stories regarding CI Host. They are not highly regarded by any measure.
2) I would retain a lawyer. Just because your contract says they're not responsible for lost equipment doesn't mean you don't have any recourse. I am not a lawyer but believe you would have a significant chance of prevailing should you pursue legal action.
I'm surprised as well, I find it hard to believe no due diligence was done on the company and the reviews (horror stories as cbtrussell put it). That alone should have thrown up enough red flags to stay away.
CI Host in Chicago has had previous reports of equipment theft, I don't see why ANYONE still hosts there myself... As has been said, do due diligence on a colo provider first, there is PLENTY of bad news about CI Host.
Also, yes, you would need to get an amendment to most insurance policies to cover equipment at different locations since most policies are specifically written to cover a certain location based on the security levels, facilities, fire hazards, etc. at that location.
In addition, I would encourage you to contact a lawyer, as I am certain there must be some negligence involved to allow or facilitate the theft of that much equipment.
How we do it, is we get an inventory of EVERYTHING in and out. Nothing leaves the building without being checked out. Also there are cameras with a 1 year archive of all movement into and out of our facility. It is easy to track equipment.
Define average WHT guy affording, also what type of insurance.
All collocation companies should provide liability insurance for negligence, which IMHO loosing equipment like this is negligence. Now, fire theft etc. I do not know if you can insure equipment that is not yours.
I have worked in Sales for CI Host in the past and left due to some very questionable business practices. They have been known to have equipment come-up missing before. The first thing they do is file a police report then the equipement is not going to be replaced as they have had to many previous claims for missing equipment so your claim will be denied. Then if you escalate the issue Chris Faulkner(owner) will sue you for defemation of character, slander, liable, or anything else that he and his on-staff council deside the hit you with. This is an owner that sues every former employee for the non-compete agreement and trys to send them into bandruptcy or worse. He has at anytime several lawsutis going and likes to use the law to tie-up antone that he fells is a threat to his company with frivilous litigation that goes no where.
The best thing to say is to find another provider as the equipment is gone and your efforts to try and re-cover it will only only serve to get you in deeper and have no results sorry to say.
I can only offer you my sincere wishes and hope that you can move on to another colo provider.