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Insurance for Virtual and Augmented Reality Companies

The virtual and augmented reality (VR/AR) industries are experiencing increased customer engagement and adoption. By 2028, the number of users is expected to reach a staggering $3.674 billion users by 2028, reflecting the growing appeal of immersive experiences. This increases opportunities for businesses in this space.

However, as these technologies become integrated into our daily lives, the need for specialized insurance for virtual and augmented reality companies also grows. Founder Shield is known for providing specific insurance coverages to various sectors, including augmented and virtual reality businesses.

Industry Overview

Statistics show transformative potential. The Virtual reality & AR technology market is poised for significant expansion, with a projected revenue of $38.6 billion USD in 2024.

Plus, the industry is set to exhibit robust annual growth, with a compound annual growth rate (CAGR) of 10.77% forecasted from 2024 to 2028. This growth trajectory will propel the market volume to an impressive amount in the coming years.

Within this thriving sector, augmented reality technology emerges as the largest market segment, boasting a market volume of more than $11.5 billion USD in 2023.

Plus, experts anticipate the average revenue per user (ARPU) to increase continually, highlighting the monetization potential of this dynamic sector.

This exponential growth in the augmented and virtual reality technology industry calls for a collaboration with the insurance industry for virtual reality commercial insurance that can help businesses navigate through the risks efficiently.

Why is Insurance for Virtual and Augmented Reality Companies Important?

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Risk Mitigation

Insurance companies help with risk mitigation for companies working with augmented and virtual reality technology. The fully immersive visual experience and nature of these technologies can impose several risks, resulting in legal complications and data and privacy breaches. Insurers save companies by covering the costs of typical claims settlement and conducting risk assessments to help businesses focus on their primary goals.

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Product Liability

Augmented and virtual reality technologies are popular for their immersive experiences. By leveraging tracking and navigation systems, you can gain significant entertainment value, evaluate post-disaster damage, and even conduct virtual driving tests, among other AR-enabled solutions.

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Business Continuity

Since Founder Shield conducts risk assessments closely, we can precisely estimate what risks should be dealt with on priority. Therefore, VR and AR companies can address operational challenges with our insurance policies, ensuring that companies can continue operating despite unforeseen events.

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Customer Satisfaction

Companies that prioritize customer satisfaction gain more customers. Insurance can enhance customer satisfaction by providing remote assistance at all critical customer touch points, ensuring compensation claims are handled efficiently.

Virtual and Augmented Reality Insurance
Coverage & Policies

These coverages form the foundation of any risk management program for virtual and augmented reality companies:

general liability
General Liability Insurance Learn More
General Liability Insurance

This policy protects against claims of bodily injury, property damage, and personal/advertising injury. VR and AR experiences can sometimes lead to physical mishaps, such as users tripping or colliding with objects, making General Liability crucial for covering potential accidents arising from using or showcasing these immersive technologies.

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Workers’ Compensation Learn More
Workers’ Compensation

This insurance caters to medical expenses and wage replacement for employees injured on the job. Given the experimental nature of VR and AR, employees working with, or testing, these technologies might face unique workplace injuries or strains, necessitating this coverage.

Employment Practices Liability Learn More
Employment Practices Liability

This policy safeguards against claims related to employment issues such as wrongful termination, discrimination, or harassment. As the VR and AR industry is still nascent and evolving, companies in this space may face growing pains in hiring, management, or diversity, leading to potential claims.

Virtual and Augmented Reality
Specific Insurance Coverage

These policies are essential for or can be tailored to the needs of companies operating in the virtual and augmented reality space:

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Directors and Officers Learn More
Directors and Officers

Tailored to protect corporate leadership against claims resulting from their managerial decisions. In the dynamic VR and AR sector, where market trajectories can shift rapidly, executive decisions could become areas of contention, making this coverage essential.

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Errors and Omissions Learn More
Errors and Omissions

This insurance covers claims arising from professional mistakes or oversights. Given that VR and AR solutions have myriad applications—from gaming to medical training—any software glitch or oversight can have significant implications, emphasizing the need for this protection.

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Cyber Liability Learn More
Cyber Liability

A must-have for potential losses from cyber threats like data breaches. VR and AR platforms often require vast amounts of user data, and any compromise in these datasets, or vulnerabilities in the platforms, can expose companies to substantial risks.


This covers losses associated with criminal activities like fraud or theft. With the proprietary tech and intellectual property in the VR and AR domain, there’s potential for both internal and external malfeasance, making this policy valuable.

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Digital Asset Learn More
Digital Asset

Focused on safeguarding digital assets such as proprietary software or unique digital licenses. For VR and AR companies, which often rely on a suite of unique digital tools, algorithms, and content, this insurance protects against potential losses or breaches of these critical assets.

Virtual and Augmented Reality Insurance Costs

Insurance is a vital tool for augmented and virtual reality companies to manage the unique risks. It provides financial protection, risk management support, and peace of mind in a rapidly evolving and highly competitive market.

The user penetration is on the rise, almost 28.8% in 2023 and projected to reach 32.6% by 2027. This shift underscores the increasing integration of VR & AR technologies into daily life.

Founder Shield’s insurance plans offer tailored coverage to these technical specialists as per their budget, after conducting a detailed risk assessment.

Virtual and Augmented Reality Insurance
Questions (FAQ)

The cost of insurance for VR and AR businesses will depend on several things, including the company’s size and development stage. Other factors include:

  • Exposures: risks being insured
  • Company practices: views on safety, compliance, and risk management
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

While there is no blanket requirement for virtual and augmented reality (VR and AR) insurance, businesses in this sector may find it prudent given the unique risks. Depending on contractual obligations with partners or clients, or specific regulatory guidelines, certain coverages might be explicitly mandated or highly recommended.

The appropriate coverage for VR and AR insurance depends on the scale of your operations, the nature of your applications, potential liabilities, and the volume of sensitive data processed. Conducting a comprehensive risk assessment, factoring in scenarios like user injuries or software malfunctions will help determine suitable coverage levels.

To procure VR and AR insurance, engage with insurance providers or brokers specializing in technology and emerging industry risks. They will understand the nuances of the VR and AR domain and offer policies or packages tailored to your company’s specific exposures.

Business liability insurance protects companies against financial losses resulting from claims of injury or damage caused to third parties, either through the company’s products, operations or on its premises. It is foundational coverage, ensuring the financial stability of a business in the event of unexpected liabilities.


Yes, VR and AR insurance policies can be tailored to fit your specific needs and risks. Whether adjusting coverage limits, including specific endorsements, or excluding certain perils, collaborating with an experienced insurance professional will ensure a policy congruent with your operational landscape.

Virtual and Augmented Reality Insurance Quotes

Finding virtual and augmented reality insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined and intuitive as possible.

Get a quote

Use our custom-built digital platform to get quotes fast. We automate clerical tasks that plague traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

Stay one step ahead

To do better, you need to know better. With changing political, technological, legal, and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments in your industry, proactively ensuring you’re covered.

Jonathan Selby General Manager
Jonathan Selby, Tech Industry Specialist

Your Virtual and Augmented Reality Insurance Specialist

Jonathan spent the first five years of his professional insurance career working as a generalist broker at a traditional firm on Long Island. Intrigued by how to leverage technology in the industry, he joined the Founder Shield team in 2016 and quickly grew into his current leadership role of General Manager. Jonathan works to oversee client strategy and communication and has fostered a culture of providing unparalleled service and risk consulting for some of the fastest-growing companies in the world. Outside of work, he can be found on the basketball court and chess board — but not at the same time.

Why Choose Founder Shield?

Founder Shield is a leading insurance provider that specializes in offering comprehensive coverage for technology companies, offering numerous benefits and advantages over traditional insurance providers. Here’s a breakdown of some of the key features and benefits that you’ll enjoy with us:

Benefits of Choosing Founder Shield:
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Industry Expertise

Founder Shield is focused on protecting rapidly evolving technology startups. We ensure that our products are tailored to meet the unique needs of virtual and augmented reality companies.

Customized Solutions

Founder Shield offers bespoke insurance policies that are designed specifically for each client’s needs, ensuring comprehensive coverage that addresses the unique risks associated with VR and AR operations.

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Fast Quotes

With Founder Shield’s streamlined quoting process, you can receive a personalized quote for your virtual and augmented reality insurance quickly, allowing you to make informed decisions fast.

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Ease of Use

Founder Shield’s user-friendly digital platform makes it easy to manage your insurance policies, submit claims, and access important documents whenever you need them.

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Dedicated Support

Founder Shield provides exceptional customer service, with dedicated account managers who are always available to assist you with any questions or concerns you may have about your insurance coverage.

Scalable Coverage

As your technology business grows, Founder Shield’s insurance policies can grow with you, ensuring you always have the right level of coverage for your changing needs.

Founder Shield is a preferred choice for VR and AR businesses because of our specialization in the industry. We offer flexible and customized insurance policies, a speedy quoting process, and exceptional customer service with dedicated account managers.