Cryptocurrency security company, BitGo have announced insurance protection for cryptocurrencies and digital assets held in their Business Wallet and Custody offerings. This insurance will be underwritten by Lloyd’s of London.
Custodial assets held in BitGo business wallets or in its qualified custodian arm, BitGo Trust Company, will be insured for up to $100 million. The company says clients will be covered against third-party hacks, the theft of private keys, insider theft and physical loss or damage of private keys.
“This is the most complete insurance offering in the industry. It is not always easy for some clients to understand under what circumstances their investments are insured and to what extent their loss would be covered,” said BitGo CEO, Mike Belshe. “We are changing that by being more transparent than any other company about the terms of our coverage. Transparency and accuracy is essential for building trust in the market.”
A Pioneering Spirit
Engaging with new technology and moving with the times is what took Lloyd’s from its humble beginnings in 1688 to becoming the world leader for specialist insurance. Edward lloyd saw the need for marine insurance in the 17th century and people flocked to his coffee house to obtain it. Recognizing crypto is a continuation of that pioneering spirit.
Nicholas Edwards, Head of Fine Art & Specie, AmTrust at Lloyd’s said: “We have been working hard to tailor a bespoke insurance product for BitGo, in this new, rapidly developing and complex sector. Following a thorough review of BitGo’s security and controls we are delighted to have delivered an innovative solution that enables our client to develop and grow its business with confidence and security.”
BitGo clients will be able to purchase theft insurance and key recovery service called Lost Key Cover through Digital Asset Services, an insurance provider overseen by U.K. regulator the Financial Conduct Authority (FCA).To help clients understand and assess insurance offerings, BitGo have published a whitepaper and a webinar will take place on March 12.
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