So the best way to keep yourself covered is to buy a new dongle every two years and transfer the licenses then think about getting some insurance (again, search the forum for more details) depending on how much you have invested in this. Nuff said!
Okay, I guess not😔
As Mr. Hula said, VSL has to pay for those licenses too. I don't know how much they have to pay but evidently they have to pay enough to charge you 50%. Yes! it sucks. But it sucks for everybody. If you loose your key why should VSL have to pay for all those licenses and if they pay for yours then they have to pay for everybody else too.
Why the other players in this game like Eastwest have more generous terms with these licensing companies I don't know that either.
Could VSL do more to warn their customers about the consequences of losing a Vienna key? Maybe so. I think at least a bright red warning sticker on the box that the key comes in might help. Admittedly I didn't realize how important that key was until somebody asked about it on the forum one day but I had never dealt with dongles before.
As for insurance, I think the question the insurance companies would ask is are you a professional composer who needs these software products as part of your livelyhood or are you just a hobbyist, a weekend warrior? If you're a hobbyist then you're a greater risk and I imagine you would have a hard time finding insurance. But if you run a studio and you need this software to operate your business you might have better luck because you're more likely to take care of it.
As for me, I have a small business and works out of my home so my licenses are semi-insured through my homeowners insurance. As long as it doesn't leave my home or my studio I'm covered. If my home is burglarized or the key is lost due to a disaster (fire, flood, etc.) I'm covered. It went throught the washer and dryer because I left it in my pants pocket, I'm screwed. I lost it while on vacation, I'm screwed.