Liability of the insurance company
With two hours transfer time our company would probably book this connection since the risk is pretty small. As a private person I don't think I would do it, because I'd risk missing a potentially expensive flight. It would be easier the other way around .
But this idea of involving travel insurance fascinates me. With more and more single leg tickets instead of through-ticketing, maybe this is the way to go in the future??? If connections meet minimum time requirements at the airport, should the insurance company be liable to cover it? Isn't this a case you would want to buy insurance for?