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Decentralized Finance Insurance

In decentralized finance’s evolving and volatile landscape, safeguarding your venture is paramount. Among all DeFi insurance companies, Founder Shield offers comprehensive solutions tailored specifically for companies and startups like yours, providing a premium safety net in the high-risk digital financial ecosystem.

Industry Overview

The DeFi market is poised for substantial growth, with projected revenues reaching US$17,740.0 million in 2023. This growth is anticipated to exhibit a CAGR of 15.86% through 2023-2028, culminating in a projected total revenue of $37,040 million by 2028.

In 2023, the average revenue per user in the DeFi market is estimated to be $1,064, reflecting the significant economic activity within this decentralized financial landscape.

A global comparison underscores the dynamic nature of the DeFi market, revealing that the highest revenue is expected to be generated in the United States, reaching $8,673,000M in 2023.

All these numbers underscore the need for a strong and robust DeFi insurance market in the US. FounderShield stands tall as being among the most favored DeFi insurance providers and takes pride in setting an unprecedented standard of how DeFi insurance works for decentralized finance companies.

Why Is Insurance for
DeFi Companies Important?

DeFi Companies 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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Protecting Against Smart Contract Exploits

The decentralized nature of DeFi relies heavily on smart contracts. However, vulnerabilities in these contracts can lead to substantial financial losses. Founder Shield’s DeFi insurance protocol shields your business from the financial fallout of smart contract exploits.

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Mitigating Risks in the DeFi Ecosystem

Navigating the DeFi ecosystem involves managing diverse risks, from liquidity provider issues to exchange hacks. Founder Shield offers tailored insurance products to mitigate these risks, providing a crucial safety net for your business. Our insurance contract is as comprehensive as they come!

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Ensuring Stability Amidst Market Volatility

DeFi’s growth curve is often accompanied by market volatility. Our insurance company acts as a stabilizing force, allowing your business to thrive in the face of adverse events.

Securing Against Centralized Entity Risks

In a space built on decentralization, centralized entities can pose significant risks. Founder Shield’s decentralized insurance protocols offer protection against potential pitfalls associated with centralized counterparts.

DeFi Insurance
Coverage & Policies

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

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General Liability Insurance Learn More
General Liability Insurance

General liability insurance provides coverage against claims of bodily injury, property damage, and advertising injury (like slander or false advertising) that can occur during business operations. For DeFi companies, this is particularly important as it offers protection against claims that might arise from their physical operations or marketing activities. Even though DeFi companies operate largely in the digital realm, they are still susceptible to such claims, making general liability insurance a fundamental safeguard.

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Workers’ Compensation Learn More
Workers’ Compensation

Workers’ compensation insurance covers medical costs and a portion of lost wages for employees who get injured or sick on the job. In the DeFi sector, despite the digital nature of work, employees can still face workplace injuries (like repetitive strain injuries from computer work). This insurance is also a legal requirement in many jurisdictions, helping DeFi companies comply with labor laws while protecting their workforce.

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

EPL insurance protects businesses against claims by employees alleging discrimination, wrongful termination, harassment, or other employment-related issues. For DeFi companies, which are often rapidly evolving and scaling, EPL insurance is crucial. It helps manage risks associated with human resources and workplace conflicts, ensuring that the company can navigate these challenges with added financial and legal support.

DeFi Specific
Insurance Coverage

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

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Directors and Officers Learn More
Directors and Officers

D&O insurance offers financial protection to the company’s directors and officers in the event they are personally sued for actual or alleged wrongful acts in managing the company. In the DeFi space, where business decisions can be highly scrutinized due to the innovative and sometimes controversial nature of the industry, D&O insurance is vital. It helps attract and retain high-caliber executives by mitigating the personal risk associated with their roles.

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Errors and Omissions Learn More
Errors and Omissions

E&O insurance, also known as professional liability insurance, covers legal fees and damages resulting from claims of negligence or failure to perform professional services. DeFi companies, offering financial services and advice, can be particularly vulnerable to such claims. E&O insurance is essential for protecting against the financial consequences of lawsuits alleging that the services provided caused a client financial harm.

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Cyber liability Learn More
Cyber liability

Cyber liability insurance is designed to cover a business’s liability for a data breach involving sensitive customer information. For DeFi companies, which handle large volumes of digital transactions and sensitive data, this type of insurance is crucial. It covers costs associated with data breaches, including legal fees, notification costs, and any fines or penalties. Given the high risk of cyber threats in the DeFi sector, this insurance is a key component of risk management strategies.


Crime insurance protects businesses from losses due to crimes such as theft, burglary, robbery, forgery, and fraud. For DeFi companies, this is particularly relevant as they are often targets for sophisticated cybercrimes, including fraud and theft of digital assets. Crime insurance can provide financial protection against such losses, ensuring that the company’s assets are safeguarded against criminal activities.

DeFi Insurance Costs

Understanding the costs associated with DeFi insurance is vital for making informed decisions. Insurance policies and pricing structures vary across companies and policy types.

Founder Shield provides transparent insights into these costs, empowering you to choose the coverage that aligns with your specific needs and budget. As soon as your initial insurance contract gets ready, we share it with our clients to ensure we’re on the same page.

If you’re looking for a DeFi insurance company that manages risks proactively, ensuring that your business never faces any adverse events, you’re on the right page. Contact us today, and let us help you reach the heights of success in this dynamic market!

DeFi Insurance Frequently Asked
Questions (FAQ)

The cost of insurance for DeFi businesses can vary widely based on several factors such as the size of the business, the level of risk exposure, the amount of coverage needed, and the specific type of DeFi operations. Generally, because DeFi is a relatively new and rapidly evolving sector with unique risks, insurance premiums can be higher compared to traditional finance sectors. Premiums might range from a few thousand to several tens of thousands of dollars annually, depending on these factors.

As of now, DeFi insurance is not legally required, but it is highly recommended. Given the high-risk nature of the DeFi space, including risks like smart contract vulnerabilities, operational risks, and the potential for regulatory changes, having insurance can provide a safety net. It’s particularly important for businesses that handle a significant amount of digital assets or those that provide platforms for DeFi transactions.

The amount of DeFi insurance you need depends on your business’s specific risk profile. This includes the value of the assets under management, the nature of the DeFi services offered, and the potential financial impact of risks like fraud, hacking, or operational failures. A thorough risk assessment, often done in collaboration with an insurance broker or advisor specializing in DeFi, can help determine the appropriate level of coverage.

To obtain DeFi insurance, you should start by consulting with insurance brokers or companies that specialize in cryptocurrency and DeFi coverage. These experts can guide you through the process, help assess your specific risks, and tailor a policy that meets your needs. It’s important to work with insurers who understand the DeFi ecosystem and can offer relevant coverage options.

Business liability insurance is a type of insurance that provides protection against claims resulting from injuries and damage to people or property. It covers legal costs and payouts for which the insured party would be found liable. For DeFi businesses, this could include claims related to financial losses incurred by clients due to operational issues, cybersecurity breaches, or failure of the services provided.


Yes, DeFi insurance policies can often be customized to fit the unique needs of your business. Insurers specializing in this area can tailor coverage options to address specific risks associated with DeFi activities, such as smart contract failures, theft of digital assets, or regulatory compliance issues. Customization ensures that the policy is relevant and provides adequate protection for the specific operations of your DeFi business.

DeFi Insurance Quotes

Finding DeFi 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 DeFi 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 DeFi 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 digital asset 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 DeFi 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.