As soon as you pull up, people with clipboards will approach you and sell you the insurance on the spot. As others have mentioned it is mandatory and you won't be able to get the import permit without it. But it is only liability insurance and will not cover the bike itself. As far as I know, there's probably not much, if anything, available to cover the bike.
Have fun on Ometepe ...very gnarly dirt roads :-)
...Michelle
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