There are many different types of insurance that businesses in the digital asset industry need to think about. We typically place four main covers for our clients:
Professional indemnity / technology liability: Just because you work with zero trust architecture doesn’t mean it’s free of bugs or being used in an unintended way. Professional indemnity (aka technology liability, or errors and omissions) protects you from allegations of a third party that they suffered a financial loss due to your professional or technology services. This could be from an error in your software, losses arising out of your professional negligence when executing trades, unintentional copyright infringement or a breach of contract.
Cyber: Cyber won’t cover hacking of your private keys, but it will cover you for hacking of your data, ransomware attacks, cyber business interruption and denial of service attacks (among others). If you process or hold sensitive and/or significant amounts of data, you should really consider insuring your company against the risks associated with running a digital business. This cover is fast becoming a ‘must have’ for digital businesses and is now being asked for in most commercial contracts.
Directors and officers liability (D&O): If you’re a director or officer of a company your personal assets are at risk for the decisions you make on behalf of the company. Whether it be trying to attract new investors or protect the existing ones, D&O is an absolute must in an ever changing regulatory environment.
Crime/Specie: The protection of your private keys is of the utmost importance. If you are holding private keys for yourself or others you should think carefully about insuring these and the risk management that comes around the holding of cryptographic material. We can provide insurance solutions for both hot and cold wallets, although hot is harder to find due to the higher risk nature of this architecture.