Businesses are investing real money in virtual assets. They are buying property on metaverse platforms, selling branded digital goods in the metaverse, and investing in elaborate virtual user experiences. Are potential losses and liabilities that may arise from the development and use of metaverse digital assets covered by insurance?
This question may sound esoteric to anyone outside a corporate risk management office, but the money at stake (which could be billions) should be top-of-mind within the C-Suite.
Novel risks are sure to arise from metaverse commerce. Current commercial insurance products might respond in a number of different ways.
It’s the Same, But Different
The general types of losses and liabilities arising from the metaverse will likely resemble those companies now face because of internet and social media activities: hacking, business interruptions, privacy breaches, and ransomware attacks.
What will differ, however, is how much time we will spend in the metaverse—working, socializing, buying, selling, dating, gaming, sharing religious observances, and celebrating life events.
For those whose metaverse identity becomes their primary identity, the loss or…
