Insurance for Cryptocurrency Companies

Protects the personal assets of directors and officers from lawsuits and regulatory investigations alleging “wrongful acts” in managing the company. This includes defense costs, settlements, and judgments related to issues like breach of fiduciary duty, failure to comply with AML/KYC regulations, and misrepresentation to investors. In the highly regulated and volatile crypto space, D&O is crucial for attracting and retaining top talent, as it shields executives from personal liability arising from complex regulatory changes or shareholder disputes following market downturns.

Protects the company against claims of financial loss by a client or third party due to a mistake, negligence, or failure of the company’s professional service or product. This specifically includes defects in software, code errors, or flawed advice. For exchange operators, DeFi platforms, and wallet providers, E&O is the policy that responds to lawsuits alleging a smart contract bug, a platform failure, or an operational error resulting in the irreversible loss of client funds.

Covers both first-party (your company’s) and third-party (client-related) losses resulting from a data breach, cyberattack, or network security failure. First-party costs include forensics, legal counsel, notification expenses, and business interruption. Third-party costs cover regulatory fines and liability lawsuits from clients whose personal data was compromised. While Crime insurance covers stolen assets (see below), Cyber Liability covers the cost of the breach itself (e.g., system downtime, PII data loss, regulatory response), which is essential for any company handling vast amounts of user data and facing constant attack attempts.

Protects the business against financial loss due to traditional crime vectors, including employee dishonesty (insider fraud/embezzlement) and social engineering attacks that trick staff into transferring fiat or digital funds. It shields the company’s balance sheet from internal and external fraudulent human activity.

This specialized coverage focuses specifically on the direct loss, theft, or destruction of digital assets (crypto) from the company’s hot or cold wallets due to external hacking or key loss. It provides the high-capacity funds necessary to replace the stolen assets and maintain client confidence.

A highly specialized form of crime insurance for businesses that act as custodians, often focusing on the physical security of private keys (the equivalent of digital cash). It specifically covers the loss, destruction, or disappearance of private key material stored in a physical vault or secure facility. It’s vital for institutional-grade cold storage providers. It addresses the specific logistical and physical risks associated with managing hardware, paper backups, or other cryptographic seeds, bridging the gap between digital property and traditional physical security.