No, the insurance is only for the lenders. You are welcome to take out your own insurance as a borrower though another insurance company.
As a borrower you are fully liable for any damage you cause to the item. This means it is your responsibility to have the funds available to replace the item if the worst case scenario happens and you entirely destroy, or lose the item. You will also need to pay for any damage you cause so make sure you have the funds available just in case.
The borrower is fully responsible for an item while in their possession. So if it gets stolen, broken, lost or confiscated during this time, they will have to bare the cost of rectifying the problem.