Cryptocurrency insurance policies are designed to provide protection against cryptocurrency theft losses, management liability as well as general cryptocurrency capital loss. Insurance as a part of responsible risk management is the next step in cryptocurrency’s ongoing evolution.

Cryptocurrency companies like Blockchain, Bitcoin and Ethereum and cryptocurrencies themselves are being targeted by online criminals because of the very things that make them such an appealing alternative to fiat currency: anonymity, availability and accessibility. For example, the relatively short history of Bitcoin is littered with stories of large-scale hacks, and these are so widespread that a small-time investor is exposed to just as much risk as a large-scale exchange.

Cryptocurrency insurance provides some protection against such eventualities, giving the investor the peace of mind that has, until now, simply not existed in the cryptocurrency sector. It guards against loss, which means investors can build and trade their fortunes without worrying that a single hack or malicious attack could decimate their holdings.

WHY IS CRYPTOCURRENCY INSURANCE SO IMPORTANT?

Insurance for cryptocurrencies is important when you take the instability of the cryptocurrency ecosystem into consideration.

The valuation of cryptocurrencies has recently skyrocketed and are trading for billions of dollars and have a combined market cap of around $300 billion, an amount that is predicted to be as high as $5 trillion in a few short years. This has resulted in substantial thefts of online wallets and exchanges. The average investor holds thousands of dollars worth of these digital coins, and because these coins are held in a virtual space, and not a physical vault, they are more exposed.

Cryptocurrency investors and businesses require more and different protection than other more tangible industries, and that’s where cryptocurrency insurance has a part to play.

This insurance provides the security that an investor needs and allows them to grow their investment safe in the knowledge that they will be covered in the unlikely event it is stolen.

WHAT DOES CRYPTOCURRENCY INSURANCE COVER?

Cryptocurrency insurance does not guard against volatility but it does guard against theft, loss and mismanagement. Our cryptocurrency insurance is available to consumers throughout the USA and offers protection against hacks and scams that result in the loss of digital currencies. These can include:

• Crime Liability: Insurers offers both crime cold storage and crime hot storage solutions. Protect yourself or your business against cybersecurity intrusion. In cases of loss, theft or hacking of cryptocurrency assets and valuable data, as well as natural disasters and inside collusion, know you are covered.

• Cyber Liability: This policy provides coverage in instances of coin/token holder’s data or customer data is lost because of negligence, hacking, malware, data or cyber breach, etc. It can help protect businesses from reputation harm should any of these instances occur.

• Directors & Officers’ Legal Liabilities: Data breaches or cybercrime incidents can have serious consequences for the directors and officers of the afflicted entity, including regulatory investigations, shareholder lawsuits and even criminal investigations. Directors and officers insurance is intended to supply coverage for these kinds of liabilities.

• Product Negligence, Errors and Omissions: This kind of professional liability insurance provides protection to companies and their workers against claims of negligence or mistakes. This policy covers claims made by customers who have lost their cryptocurrency assets.

WHO NEEDS CRYPTOCURRENCY INSURANCE?



Waters Insurance Network works with domestic and international insurers to find the best solutions for our customers. This even includes those with initial coin offerings (ICOs) or who participate in the securitization of these assets. Our clients fall into various cryptocurrency sectors, each with their own risks. Therefore, they require difference coverages that intrinsically understand the needs of this everchanging sector. These sectors include:

• Exchanges
• Payment processing
• Mining
• Custodians
• Financial services(platforms)
• Wallets
• Infrastructure

Anyone who invests in cryptocurrencies, holds a substantial amount, or runs a business that processes them, should understand what cryptocurrency insurance is and why they should consider it. This insurance is also available to companies that transact in cryptocurrencies, including e-commerce websites that accept them as a payment method and store the resulting income, as well as exchanges that trade with large amounts of them on a daily basis.

If you are thinking about investing in these currencies but have always been concerned about the risks associated with them, then cryptocurrency insurance can help to ease you into a secure investment.

Disclaimer: Insurance is NEVER a substitute for adequate safeguards, cyber hygiene best practice and state-of-the-art products and services that help prevent losses. Insurers should be embraced as partners in prevention of loss and a critical part of the protection of your clients and your business.