BitGo becomes the first digital asset custodian to offer investors the possibility to increase insurance limits for crypto amounts over $100 million.
BitGo, a company that processed over 20% of all global Bitcoin (BTC) transactions, announced yesterday the new insurance possibilities for its dedicated customers. The company is now offering an Excess Specie Insurance, which opens the ability for the institutional clients to purchase their own dedicated excess limits above BitGo’s $100 million policy. According to the official announcement, the clients named as Dedicated Customer Loss Payees, will be granted with the additional layer of protection.
The key features of the additional insurance policy will include adjustable limits and prorated premiums that allow payments only for the relevant period of protection.
The company introduced its first cold storage insurance protection for digital assets covering $100 million last year. The insurance protection, backed by Lloyd’s of London,
is meant for digital assets stored on devices, that are not connected to the internet. The insurance covers losses caused by the thefts of the cryptographic keys and by the physical access to the storage. The excess insurance also in only for cold storage wallets. Mike Belshe, the CEO of BitGo claims that:
The new excess policy is the strongest and lowest cost full coverage for digital assets in the market today.
Crypto insurance is gaining a position
Some time ago the cryptocurrency market has been associated with the “wild west” mainly due to the lack of regulation. Since the industry is evolving, cybercrimes, such as hacks to cryptocurrency exchanges or trading platforms and crypto thefts become an increasing risk as well. This leads both crypto institutional investors and individual users to seek out ways to protect their digital property. Digital asset insurance seems to become more and more in demand lately.
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