When you insure your digital assets, you're taking a step to protect yourself against potential losses. Whether it's a hardware wallet, private keys, or tokens, insuring your assets gives you peace of mind in knowing that you're covered in case something happens.Web3 itself is an idea based on the iteration of the world web wide alongside smart economics, blockchain technologies and more virtual assets.
But there are other benefits to insuring your virtual funds especially on Web3 as well. For one, it can help improve your overall security posture. By having insurance, you're signaling to potential attackers that you're taking security seriously and that they may not be able to gain access to your funds easily.
Firms like Degis work by verifying the validity of a claim and then releasing the funds to the policyholder. So if something happens to your funds, you can be assured that you'll be able to recover them with the help of a smart contract insurer. It's just one more layer of security that you can use to protect your virtual assets.
Insurance can also help you recover your assets in the event of a loss. If something happens and you lose access to your funds, the insurer can help you get them back. This can be a huge relief in a time of crisis and can help prevent you from losing everything.
Source: https://www.reddit.com/r/NFTGames/comments/xm9i5i/why_do_you_need_insurance_on_web3/
