CNA Insurance excludes NFTs from coverage of $20M trust policy

CNA Insurance has decided to exclude coverage for nonfungible tokens (NFTs) from the $20 million trust policy held by Schwab Strategic Trust. In a filing submitted to the U.S. Securities and Exchange Commission, the insurer introduced an exclusion clause stating that the policy would not cover any losses, damages, claims, occurrences, or lawsuits related to NFTs.

CNA Financial, ranked as the seventh-largest commercial insurer in the United States, made this amendment to the policy, defining NFTs as follows: “Any unique digital identifier associated with any digital ledger technology that may be used to verify the authenticity or ownership of various items, whether digital, tangible, or intangible, but cannot be substituted or exchanged for a similar item.”

This policy amendment effectively means that any losses associated with NFTs will not be covered by the insurer. It’s worth noting that the policy clarification explicitly differentiates “cryptocurrency” from NFTs, indicating that cryptocurrency remains within the coverage.

While NFTs enjoyed significant popularity during the 2021 bull market, their value and trading volume experienced a notable decline a couple of years later. On August 3, a decrease in NFT gas usage suggested a shifting landscape for these digital assets.

Despite this waning interest, some celebrities and businesses continue to embrace NFTs. For example, soccer star Cristiano Ronaldo announced plans to release more NFTs in the future and even underwent a lie detector test to mark the launch of his second NFT collection with the cryptocurrency exchange Binance.

Additionally, airlines are exploring NFT integration into their loyalty programs. Lufthansa, for instance, unveiled an NFT app on August 31, allowing users to scan their boarding passes to redeem NFTs. These NFTs can provide passengers with various rewards, including flight upgrades and lounge access.

For those interested in preserving this article as an NFT and supporting independent journalism in the crypto space, there’s an opportunity to do so. Source: https://cointelegraph.com/news/nft-cna-insurance-excludes-coverage-from-20-m-trust-policy