INSIGHT

PROTECTING NFT PROJECTS: WHY DIGITAL ART NEEDS REAL-WORLD INSURANCE

PROTECTING NFT PROJECTS: WHY DIGITAL ART NEEDS REAL-WORLD INSURANCE

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

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