Japan-based NFT Platform HARTi and insurance group Mitsui Sumitomo are collaboratively introducing NFT insurance for all digital artworks exhibited within the HARTi app. 

Specifically, the freshly released insurance will reportedly be an attachment to the NFT pieces on display by sellers with no fees accompanied, where HARTi takes responsibility for the premium payments. 

Under the scheme, Mitsui Sumitomo will provide compensation to owners of insured NFTs, should their virtual assets be compromised by unsanctioned third-party access (nominally via phishing, theft, or wallet hacks) or become bugged or glitched during transfers.

Should those kinds of events occur, the policy will complete compensation payout to the NFT owner, depending on the exhibition price of every item, with the highest amount can reach up to 500,000 yen ($3,661). 

Both parties reportedly share expectations to carry out the expansion of their partnership to cover the mitigating work for the risks of NFTs, along with offering policies with higher compensation limits in the future.

“The theme of safety and security is paramount for encouraging the entry of major Japanese companies into NFTs, including department stores, commercial facilities, and major brands. Therefore, we hope this new service will play a role in the safety of the domestic NFT secondary market.”

Per Yoshida, taking into account the crucial nature of insurance for the sound development of the domestic NFT secondary market, Mitsui Sumitomo Insurance developed the policy from scratch, making it the first case in Japan.” 

Different Japan-based corporate heavyweights which established their presence in the crypto and NFTs sphere reportedly include investment bank Nomura and video game publisher Square Enix.