Does an "IFR approved" GPS placard require database updates?

In regard to insurance, unless your insurance excludes it, you are
covered. So read your policy, paying close attention to the exclusions.
I can't imagine that a policy would exclude coverage for something like
that. All mine requires is the airplane be in annual at the anniversary
date of the policy and that I have a current medical. If, for example,
my annual expires or my medical expires, I am still covered so long as
I had them when the policy was initiated (the anniversary date).

You hear a lot of rumors about "insurance wont cover that". Most of
them quoted by people who never owned a plane and never read an
insurance policy.

Read your insurance. Does it say you have to comply with the minimum
equipment list to be covered? I would bet it doesn't.

Think about it. If your car had an expired inspection and you ran a
stop sign causing damage, do you think your car insurance would NOT
cover you?