What is Crypto Insurance
Crypto insurance is a type of insurance that provides coverage for losses and thefts of cryptocurrency assets. As cryptocurrencies are not backed by any government or central authority, they are vulnerable to hacking, cyberattacks, fraud, and other types of risks. Crypto insurance is designed to protect individuals, businesses, and institutions who hold cryptocurrencies against these risks.
Crypto insurance typically covers the following risks:
- Theft of cryptocurrency assets due to hacking or cyberattacks.
- Losses due to fraudulent activities, such as phishing attacks, Ponzi schemes, and other types of scams.
- Losses due to errors or omissions made by cryptocurrency exchanges or custodians.
- Losses due to natural disasters, such as floods, fires, earthquakes, and other types of catastrophic events.
Crypto insurance policies vary depending on the insurance provider, the type of coverage, and the amount of coverage. Some insurance policies may have deductibles, limits, exclusions, and other conditions. As cryptocurrencies are a relatively new asset class, the availability and terms of crypto insurance policies may change over time.
Crypto insurance coverage range
The coverage range of crypto insurance depends on the insurance provider, the type of coverage, and the amount of coverage. Generally, crypto insurance policies cover losses and thefts of cryptocurrency assets due to hacking, cyberattacks, fraud, errors or omissions by exchanges or custodians, and natural disasters.
The coverage amount may vary depending on the policy, but it can range from a few thousand dollars to millions of dollars. Some insurance policies may have deductibles, limits, exclusions, and other conditions that affect the coverage range. For example, a policy may cover up to $1 million in losses due to hacking, but may have a deductible of $10,000 and may exclude losses due to insider theft.
In addition to coverage for cryptocurrency assets, some crypto insurance policies may also offer coverage for liability and other types of risks associated with the use of cryptocurrencies. For example, a policy may offer coverage for legal fees and damages in the event of a lawsuit related to cryptocurrency transactions.
It's important to carefully review the terms and conditions of a crypto insurance policy to understand the coverage range and any limitations or exclusions that may apply.
Top Crypto insurance company and their facility
There are several insurance companies that provide crypto insurance coverage. Here are some of the top crypto insurance companies and their facilities:
BitGo: BitGo is a digital asset custodian that provides insurance coverage for cryptocurrencies held in its custody. BitGo provides up to $100 million in insurance coverage against theft and hacking of its custody services.
Marsh: Marsh is a global insurance broker that offers crypto insurance coverage through its digital asset risk transfer (DART) team. Marsh's crypto insurance policies cover losses due to hacking, insider theft, errors and omissions, and natural disasters. Marsh works with various insurance providers to tailor policies to meet the specific needs of each client.
Aon: Aon is a global insurance broker that provides crypto insurance coverage through its digital asset risk transfer (DART) team. Aon's crypto insurance policies cover losses due to hacking, insider theft, errors and omissions, and natural disasters. Aon offers coverage for both individual and institutional clients.
Coincover: Coincover is a UK-based crypto insurance provider that offers coverage for theft, loss due to natural disasters, and other risks associated with cryptocurrency assets. Coincover offers policies with varying coverage amounts, ranging from £1,000 to £50 million.
Nexus Mutual: Nexus Mutual is a decentralized insurance provider that offers coverage for smart contract risks, such as bugs and hacks. Nexus Mutual is a community-owned platform that enables members to pool their assets and underwrite risks together.
Each crypto insurance company offers different facilities and terms, and it's important to research and compare options before choosing a policy. Additionally, the availability and terms of crypto insurance policies may vary depending on the jurisdiction and regulatory environment.