Cryptocurrency company Coinbase Inc. has a coverage of $ 255 million, but more insurers providing cryptocurrency coverage are needed, said the company's chief information officer.
The San Francisco-based company, a leading cryptocurrency exchange, has received coverage from a group of US and UK insurance companies including Lloyds of London syndicate through the Aon PLC, said Phillip Martin, who discussed the company's insurance program in a corporate blog Tuesday.
Mr. Martin said the company has had an insurance policy that covers cryptocurrency in its hot storage systems, which are systems connected to the internet, constantly since November 2013.
"The background has been the same all the time: If the worst happens and Coinbase loses customer funds, deserves the customers that they will be whole, Martin says.
Mr. Martin said that coverage is available under two main classes: Specie policy focuses on physical damage or loss of private keys, including abuse or theft in cold storage, which is storage who is offline, saying that this market generally insures art, precious metals and similar assets in the vault or exhibition.
In addition, crime policy includes losses due to hacking, insider theft and fraudulent transfers, in addition to the physical damage or theft of private key data in
"There is not enough risk transfer market acumen, "said Martin. Although more insurance companies have spent time learning about encryption risks, the demand for cryptographic insurance has increased even faster, he says.
The policy is usually written on behalf of exchanges or guardians, not directly to cryptocurrency owners, he said. 1