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Blockchain Insurance

Blockchains are revolutionizing industries, but with innovation comes risk.  Here at Founder Shield, we understand the unique challenges faced by blockchain companies.  Whether you’re a DeFi platform, a bustling NFT marketplace, or a groundbreaking dApp developer, we offer comprehensive insurance solutions to protect your ventures from the unexpected.  Explore our tailored coverage options and ensure your blockchain journey is secure and successful.

Blockchain Industry Overview

Blockchain technology has emerged as a transformative force, reshaping industries across the globe. The Grand View Research report shows that the blockchain market size was $17.57 billion in 2023. According to Statista, the market size for blockchain is expected to reach USD 1,235.71 billion by 2030, representing a compound annual growth rate of 82.8%. insurance market insurance process

While blockchain technology is transforming the financial services industry to a great extent, it’s important to know that all businesses and startups can be hit by unforeseen future claims that can result in huge financial and reputational losses. The insurance market insurance process can be tricky — but Founder Shield ensures a safe journey in this dynamic market.

Why Is Insurance for
Blockchain Companies Important?

Blockchain Companies Insurance,  can leverage insurance to be protected against several risks, improve the efficiency of their business processes, and position themselves as credible within the industry.

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Risk Mitigation in a Dynamic Environment

Blockchain companies operate in a rapidly evolving and often unpredictable environment. Blockchain’s decentralized nature and smart contract capabilities have revolutionized the entire insurance claims process since smart contracts enable timely claims settlement. Insurance provides a safety net, mitigating these risks and offering financial protection against unforeseen events that could impact the stability of the business.

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Protection Against Cybersecurity Threats

Blockchain companies, by nature, handle sensitive and valuable data. Blockchain transactions’ decentralized and transparent nature doesn’t make them immune to cybersecurity threats. Insurance provides a layer of protection against potential cyber-attacks, ensuring that the company’s assets, data, and operations remain secure. This is crucial in maintaining the trust of clients and stakeholders.

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Regulatory Compliance and Legal Challenges

Blockchain has helped many industries navigate regulatory challenges. For example, health insurance providers’ and hospitals’ privacy laws used to make sharing patient data challenging and time-consuming. With encrypted patient records via blockchain technology, healthcare providers and insurance providers can access patient’s medical data without fear of compromising. However, blockchain companies must adapt to changing regulations without compromising financial stability. Insurance helps companies navigate complex regulatory environments by covering legal expenses and liabilities.

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Business Continuity and Long-Term Sustainability

While blockchain companies are often applauded for lowering administrative costs for other industries, ensuring they’re protected is important, too. Healthcare providers have recently jumped on the bandwagon, so health insurance claims now cost less and are processed faster. Even in the insurance industry, blockchain technology has helped insurers access and share the same historical claims information confidently, without fear of being compromised.

Blockchain Insurance
Coverage & Policies

These coverages form the foundation of any risk management program for Blockchain companies :

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General Liability Insurance Learn More
General Liability Insurance

General Liability Insurance covers claims of bodily injury, property damage, and personal and advertising injury that might occur during business operations. For blockchain companies, this insurance is important as it provides protection against claims that could arise from any direct physical interactions, such as during meetings, conferences, or at physical offices. It also covers liabilities related to advertising and marketing activities, safeguarding against claims like slander or libel, which can be crucial for companies actively promoting their blockchain services.

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Workers' compensation Learn More
Workers' compensation

Workers’ Compensation Insurance covers medical expenses and a portion of lost wages for employees who suffer work-related injuries or illnesses. Blockchain companies, despite their focus on digital operations, may still have employees working in various environments, including offices or data centers, where they could experience work-related injuries. This insurance ensures that employees are adequately cared for in case of any workplace injuries, which is essential for any responsible employer.

Employment practices liability (EPL) Learn More
Employment practices liability (EPL)

EPL Insurance protects against claims from employees alleging workplace issues like discrimination, harassment, wrongful termination, and other employment-related grievances. Blockchain companies, often working in fast-paced and technologically advanced environments, can face challenges in human resource management. EPL insurance offers a layer of protection against the financial and legal repercussions of such claims, ensuring smoother operation and management.

Blockchain Specific
Insurance Coverage

These policies are essential for or can be tailored to the needs of companies operating in Blockchain :

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Directors and Officers Learn More
Directors and Officers

D&O Insurance covers the personal liabilities of a company’s directors and officers for decisions and actions taken in their corporate roles. In the blockchain sector, where business decisions can be highly innovative and sometimes contentious, D&O insurance is essential. It protects the personal assets of these individuals against lawsuits, which is crucial for attracting and retaining high-caliber leadership.

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Errors & omissions Learn More
Errors & omissions

E&O Insurance, also known as Professional Liability Insurance, covers legal fees and damages for lawsuits alleging inadequate or negligent professional services. For blockchain companies, which provide complex technical services and advice, this insurance is vital. It protects against claims of errors, omissions, or negligence in the services they offer, safeguarding the company’s financial health and reputation.

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Cyber liability Learn More
Cyber liability

Cyber Liability Insurance covers financial losses due to cyber incidents like data breaches or cyberattacks. Blockchain companies, dealing with digital transactions and often handling sensitive data, are particularly susceptible to cyber threats. This insurance covers costs related to data breaches, including legal fees, notification costs, and recovery measures, making it an indispensable part of risk management for blockchain companies.


Crime Insurance covers losses due to criminal acts such as theft, fraud, and forgery. In the context of blockchain companies, where digital assets and cryptocurrencies are involved, the risk of both internal and external crimes is significant. This policy provides financial protection against such criminal activities, ensuring the security of the company’s assets and operations.

Blockchain Insurance Costs

When purchasing insurance coverage, it’s important to be mindful of costs and the services you’re offered. You should understand how costs are associated with blockchain insurance.

At Founder Shield, we offer a range of policies tailored to the diverse needs of blockchain companies. Our transparent approach ensures that you pay only for the coverage your business requires, providing flexibility and peace of mind.

Blockchain Insurance Frequently Asked
Questions (FAQ)

The cost of insurance for blockchain businesses can vary significantly based on factors like the scale of the operation, the type of blockchain technology used, the specific services offered, and the level of risk exposure. Smaller blockchain startups may pay a few thousand dollars annually for basic coverage, while larger, more complex operations could face significantly higher premiums, especially for comprehensive policies such as cyber liability and errors & omissions insurance. Given the innovative and rapidly evolving nature of the blockchain industry, insurers may charge higher premiums due to the increased risk profile.

While there is no specific regulatory mandate for blockchain businesses to have insurance, it is highly advisable due to the unique risks associated with this sector. These risks include cyber threats, data breaches, operational liabilities, and the potential for regulatory changes. Certain types of insurance, like workers’ compensation, may be legally required in some jurisdictions. Having appropriate insurance coverage can also be crucial for credibility and trust, especially when dealing with partners and investors.

The amount of insurance a blockchain business needs depends on several factors, including the size of the company, the nature of its operations, and its risk exposure. A thorough risk assessment should consider potential liabilities from cyber threats, professional errors, and operational risks. Consulting with an insurance provider who understands the blockchain industry can help in determining the right amount of coverage, ensuring that the business is adequately protected against various risk scenarios.

To obtain insurance for a blockchain business, you should approach insurers or brokers who specialize in covering technology and innovative industries, including blockchain and cryptocurrencies. These professionals will have a better understanding of the unique challenges and risks associated with blockchain businesses. It’s important to provide detailed information about your operations, security protocols, compliance measures, and any risk management strategies you have in place to get a policy that fits your specific needs.

Business liability insurance is a broad term encompassing various types of insurance policies designed to protect a business against liabilities arising from its operations. This typically includes general liability insurance, which covers bodily injury, property damage, and personal injury claims, as well as professional liability insurance (errors & omissions), which protects against claims of professional negligence or inadequate services. For blockchain businesses, this type of insurance is crucial as it covers a range of potential risks from operational activities and professional services.


Yes, blockchain insurance policies can often be customized to suit the specific needs of your business. Given the unique and varied nature of blockchain operations, it’s important to work with an insurance provider that understands the industry and can offer tailored coverage. Customization can include adjusting coverage limits, deductibles, and including specific endorsements or exclusions that align with the particular risks and operations of your blockchain business. Customization ensures that the policy provides adequate and relevant protection.

Blockchain Insurance Quotes

Finding blockchain insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined and intuitive as possible.

Get a quote

Use our custom-built digital platform to get quotes fast. We automate clerical tasks that plague traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

Stay one step ahead

To do better, you need to know better. With changing political, technological, legal, and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments in your industry, proactively ensuring you’re covered.

Wil Hamory Vice President
Wil Hamory, Executive VP and Financial Industry Lead

Your Blockchain Insurance Specialist

Wil isn’t your average insurance guy. He thrives in the dynamic world of cyber risks, keeping pace with Founder Shield’s innovative clients.  His mission? Tailoring cutting-edge risk solutions to propel their growth. Wil’s a cyber security veteran, having witnessed the evolution of threats firsthand.  He’s helped countless Fintech, Healthtech, and Crypto companies navigate legal hurdles and scale their businesses securely.  Before joining Founder Shield, Wil honed his skills underwriting cyber liability for large private and public entities at Zurich. A University of Delaware grad, Wil has dedicated his career to empowering clients to conquer cyber threats and stay ahead of the curve.

Why Choose Founder Shield?

Founder Shield is a leading insurance provider that specializes in offering comprehensive coverage for blockchain companies, offering numerous benefits and advantages over traditional insurance providers. Here’s a breakdown of some of the key features and benefits that you’ll enjoy with us:

Benefits of Choosing Founder Shield:
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Industry Expertise

Founder Shield is focused on protecting rapidly evolving startups. We ensure that our products are tailored to meet the unique needs of Web3 businesses.

Customized Solutions

Founder Shield offers bespoke insurance policies that are designed specifically for each client’s needs, ensuring comprehensive coverage that addresses the unique risks associated with blockchain operations.

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Fast Quotes

With Founder Shield’s streamlined quoting process, you can receive a personalized quote for your insurance quickly, allowing you to make informed decisions fast.

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Ease of Use

Founder Shield’s user-friendly digital platform makes it easy to manage your insurance policies, submit claims, and access important documents whenever you need them.

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Dedicated Support

 Founder Shield provides exceptional customer service, with dedicated account managers who are always available to assist you with any questions or concerns you may have about your insurance coverage.

Scalable Coverage

As your business grows, Founder Shield’s insurance policies can grow with you, ensuring you always have the right level of coverage for your changing needs.

Founder Shield is a preferred choice for Web3 businesses because of our specialization in the industry. We offer flexible and customized insurance policies, a speedy quoting process, and exceptional customer service with dedicated account managers.