Web3 Insurance Made for Digital Threats
Protect your Web3 venture from financial losses due to cyberattacks, hacks, smart contract exploits, and other emerging threats.
Why Web3 Companies Need Insurance
Insurance Policies Tailored for Web3 Companies
Directors & Officers (D&O)
Directors & Officers (D&O)
Protects the personal assets of directors and officers in your Web3 company from lawsuits alleging mismanagement, breaches of fiduciary duty, or other wrongdoings related to their leadership decisions. This fosters a sense of security for your leadership team, allowing them to make bold, innovative decisions that drive growth for your Web3 venture.
Errors & Omissions (E&O)
Errors & Omissions (E&O)
Web3 companies might offer unique services or products powered by AI or smart contracts. E&O coverage protects your business from claims of negligence or errors in these services. This safeguards your company’s finances if, for instance, an error in a smart contract deployed for a client leads to unexpected financial losses.
Cyber Liability
Cyber Liability
Web3 businesses often handle sensitive user data and digital assets. Cyberattacks can be catastrophic. Cyber liability coverage helps you weather financial losses associated with data breaches, cyber extortion, or disruption of your Web3 operations due to cyberattacks.
Crime
Crime
Employee theft, forgery of invoices, or fraudulent transactions can pose a threat to any company. Crime insurance for Web3 companies can cover financial losses resulting from these criminal activities, protecting your valuable digital assets and operational funds.
Digital Asset
Digital Asset
Web3 companies might hold cryptocurrency, NFTs, or other digital assets. Digital asset coverage protects these assets against theft, loss due to technical glitches, or even fraudulent transfers initiated through hacking or social engineering scams.
Intellectual Property (IP)
Intellectual Property (IP)
Innovation is vital in Web3. Intellectual property insurance safeguards your ownership of unique AI models, smart contracts, or other creative works that differentiate your Web3 business. It offers financial backing for legal battles against intellectual property theft, ensuring you reap the rewards of your innovations.
Type of Web3 Companies That Need Insurance
DeFi (Decentralized Finance)
Offers financial services like lending and asset management without traditional banks, but comes with risks like smart contract bugs and market swings.
DAOs (Decentralized Autonomous Organizations)
Operate democratically online, using smart contracts for collective decision-making and managing digital assets.
BaaS (Blockchain as a Service)
Allows businesses to easily build and use blockchain applications without needing major technical expertise.
DEXs (Decentralized Exchanges)
Enable direct peer-to-peer cryptocurrency trading without relying on banks or brokers.
Crypto Mining and Minting
Creates new cryptocurrency units, but can be risky due to complex technical processes.
Web3 Identity Verification
Uses blockchain technology to give users control over their identity data, offering increased privacy and security compared to traditional methods.
And More
Web3 insurance goes beyond DeFi and DAOs. NFT marketplaces, play-to-earn games, metaverse platforms, and Web3 infrastructure providers all handle valuable assets and data. Insurance protects them from security breaches, scams, technical glitches, and ownership disputes, mitigating financial risks in this evolving landscape.
How Much Does Web3 Insurance Cost?
| Cost Drivers | Examples |
| Company Profile and Risk Management |
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| Technical Infrastructure and Code Quality |
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| Financial Health and Risk Exposure |
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| Regulatory Landscape and Compliance |
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Partnering with Founder Shield
We’re a risk management partner for high-growth companies across emerging markets, striving to create the most seamless, intuitive, and responsive insurance-purchasing experience powered by proprietary technology and insurance products.
Trusted by Venture
10,000+
Venture Backed Companies$33BN
Total Funding Raised by Clients70
NPS Score (Industry Avg = 34)How to Get Started
Submit an application and have our 1-1 advisor evaluate your startup’s unique vulnerabilities and potential liabilities.
Select tailored insurance policies that address your startup’s specific needs.
Connect with a trusted insurance provider and secure your startup’s future.
Testimonials
“I was referred to Founder Shield by a friend who works with technology-based startups as I do… Founder Shield was simple – go to the website, fill out the form, get a quote quickly, pay and Voila – you are insured. I need a highly rated insurer and they delivered… I highly recommend Founder Shield.”
“The Founder Shield team is a wonderful and supportive partner… Not only are they 100% devoted to insuring compliance, they provide continuous guidance. Our dedicated account manager is extraordinary – goes above and beyond to ensure all of our needs are met.”
“ Excellent and very reliable customer service. Founder Shield not only worked with us and helped us gain competitive insurance coverage in a field that is very new, they also went above and beyond in communicating directly with authorities to help us ease through the process of gaining permission to operate. ”
Case Studies
Smart Contract Exploit
Smart Contract Exploit
A DeFi project launched a lending platform powered by what was believed to be an innovative smart contract. Unfortunately, a critical bug was overlooked during the audit, allowing a hacker to exploit this vulnerability and steal millions in cryptocurrency from users. This resulted in a significant loss of reputation and trust for the DeFi platform, financial losses for investors, and the looming threat of lawsuits. With Web3 insurance that includes smart contract coverage, investors could potentially recover some of their lost funds, subject to the terms of their policy.
NFT Marketplace Hack
NFT Marketplace Hack
A well-known NFT marketplace was hit by a cyberattack, leading to hackers stealing valuable NFTs, including rare digital artwork worth millions. This breach resulted in users leaving the platform due to security worries and potential legal challenges from those affected. Web3 insurance for the marketplace could mitigate financial losses by covering stolen NFTs up to a limit and assist in managing reputational damage and legal costs.
Play-to-Earn Game Scam
Play-to-Earn Game Scam
A buzzworthy new play-to-earn game collapses in a “rug pull” scam, with developers vanishing after collecting significant funds from players via in-game purchases and NFT sales. This leaves players out of pocket and damages the game’s and industry’s reputation. Emerging Web3 insurance policies, though rare, may offer some protection against such scams, potentially reimbursing players’ investments or aiding in legal efforts against the deceitful developers.
Metaverse Platform Disruption
Metaverse Platform Disruption
During a major event, a popular metaverse platform is hit by a denial-of-service (DoS) attack, causing server overloads and blocking user access. This results in lost revenue and significant user frustration. The platform’s reputation takes a hit, and businesses within the metaverse face revenue losses from the event disruption. Web3 insurance offering business interruption coverage could compensate for the lost revenue, supporting the platform’s recovery and operational restoration efforts.
Schedule a time to speak with a Web3 Insurance Advisor
