Cryptocurrency Custodian BitGo Expands Crypto Insurance Policy

Published at: March 19, 2020

Cryptocurrency custodian BitGo now offers insurance for the assets it holds in excess of its $100 million coverage limit.

According to an announcement on March 18, BitGo is the first crypto asset custodian to allow its customers to purchase an excess limit above its standard policy.

Over $100 million of insurance coverage on crypto

BitGo first launched an insurance policy covering up to $100 million for the digital assets it holds in February 2019, through major insurance firm Lloyd’s. The insurance covers losses due to theft and misplaced keys.

With the introduction of the additional policy, the assets BitGo clients can insure their assets beyond custodian’s $100 million coverage. The new policy also features adjustable limits and prorated premiums that allow the customer to only pay for the relevant period of insurance.

The coverage is managed by specialty commercial insurance broker Woodruff-Sawyer & Co in partnership with Paragon Brokers.

Insurance in the cryptocurrency industry

Since cryptocurrencies are a particularly risky asset class to hold, the demand for insuring them is increasing. As Cointelegraph recently reported, protecting cryptocurrency holdings with insurance is slowly becoming a mainstream choice.

At the beginning of March, Lloyd’s started providing a new type of liability insurance policy meant to protect cryptocurrency hot wallets from theft.

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