Yes, I am sure about it and you are right, many registrars and not making profits from the domains themselves, but rather the upsells, and other domaining things such as the drops.
I had that problem when opening my 3d ultrasound business. What I finally ended up doing was piggybacking the insurance policy for my consulting firm. The policy was separate, but since I was an existing customer with no history of claims since I started (8 or so years ago) it was easy to get approval. I can't believe I didn't think of that as the first option. I love my insurance agent - she's always easy to deal with. Her name is Joanne, and her email is cymnospamruins at aol (remove the nospam in the middle), she was the first agent in 20 phone calls I made that could handle professional liability software development. She probably wouldn't know me from Adam since I only contact her once in a blue moon. No web site, I think I found her from one of those online quoting systems. The insurance company I use is The Hartford, which supposedly is pretty good, but like I said, I've never made a claim. Contacting The Hartford directly, I couldn't seem to get the right answers, so going through an agent is probably a good thing. I think she deals with multiple insurance companies, but I'm not sure. Anyhow, I hope that was helpful.