
INSIGHT
NFTs represent more than images — they hold value, IP, and legal complexity. This article explains how insurance supports NFT creators, platforms, and collectors by protecting against fraud, platform downtime, copyright claims, and asset loss.
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Introduction
NFTs have evolved far beyond art. They’re now used in games, music, licensing, identity, and IP. But as their value grows, so do the risks.
Smart contract flaws, stolen artwork, takedown notices, or platform shutdowns can wipe out millions in value. Without insurance, creators and collectors alike are exposed.
What Can Go Wrong with NFTs
Marketplace outages causing failed transactions or missed sales
Smart contract bugs that burn or misallocate tokens
Fraudulent minting or duplication
IP disputes (e.g., unauthorized use of copyrighted material)
Loss of access due to wallet compromise or delisting
These aren’t rare events — they’re increasingly common.
Fraction Brokers’ NFT Insurance Solutions
We offer coverage for:
Minting and launch protections (smart contract failure, exploit)
IP defense against copyright takedowns or lawsuits
Platform failure protection for hosted marketplaces
Collector insurance for stolen, inaccessible, or lost NFTs
Revenue protection for creators during downtime or fraud
We assess risk based on asset value, platform integrity, and contract quality.
Why It Matters to Creators, Platforms & Collectors
Creators can launch projects with confidence
Collectors gain peace of mind when holding high-value NFTs
Platforms demonstrate professionalism to artists and investors