Fintech

Insurance for Blockchain Companies

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Overview

Blockchain technology is a new way of documenting data on the internet. That said, it’s a public ledger of information collected through a network. At its most basic level, blockchain is digital information (the “block”) stored in a public database (the “chain”). Traditional recording methods keep information in one place. Still, blockchain has multiple copies of the same data stored in different locations on different networks on other devices, ensuring multiple safe copies of stored data.

Thankfully, the US Government has shown its support for developing blockchain regulation and blockchain growth. The US Congress has created the Congressional Blockchain Caucus to handle legislation dealing with Digital Leader Technology (DLT) and cryptocurrencies. In 2018, the Congressional Blockchain Caucus introduced several to encourage the federal government to monitor blockchain entities that may need to register as money transmitters. The bills also provide suggestions for the taxation of digital assets via the crypto taxation guide.

Why is Insurance for Blockchain Companies Important?

As a new and fast-growing technology, Blockchain companies have the unique responsibility of protecting digital asset opportunities for other organizations reliant upon their networks. What’s more, blockchain technology can potentially help address many challenges, such as data protection, privacy controls, and supply chain management. 

However, Blockchain companies must navigate a mostly unknown and growingly complex legal landscape. As a result, organizations using blockchain technology must understand what risks they face. Insurance is critical for Blockchain companies to protect their customers’ assets, balance sheet, and longevity in the industry.

data breach
Cybersecurity

Blockchain’s claim to fame is its secure and unhackable frame due to the encryption techniques used for authentication procedures. Dig deeper, though, and you find that blockchain faces significant security risks due to a lack of multi-signature, poor validation procedures, and flaws in blockchain codes.

credit card disable
Majority Attacks

Also known as double-spending or the 51% attack, these attacks occur when 51% of the participants control more than 50% of the network by forming a group. The power imbalance compromises the network, often resulting in a loss of funds and control of the blockchain network.

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Accountability

One of the strengths of blockchain is its elimination of intermediaries, creating more transparency. But who is responsible should blockchain suffer a collapse? No governing body is formally and solely responsible for maintaining blockchain.

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Digital Theft

Blockchain companies risk direct financial loss due to the theft, disappearance, or destruction of property owned or held for a third party. Plus, digital asset hacks and thefts are prevalent in the modern world, resulting in the need for crime protection.

Download Your Blockchain Risk Management Guide

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Types of Blockchain Companies that need insurance

  • Real Estate
  • Healthcare
  • Internet of Things
  • NFT Marketplace
  • Fintech Companies
  • Education
  • Banking
  • Payments
  • Government
  • Cryptocurrency

Blockchain Frequently Asked Questions

The cost of insurance for Blockchain companies will depend on several things, including the company’s size and development stage. Other factors include:

  • Exposures: risks being insured
  • Company practices: views on safety, compliance, and risk management
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

How it works

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

1
Get a quote

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

1
Get a quote

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

2
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.

2
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.

3
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 of your industry, proactively ensuring you’re covered.

3
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 of your industry, proactively ensuring you’re covered.

Wil Hamory Vice President
Wil Hamory, Vice President

Meet your specialist

Wil Hamory is a Vice President at Founder Shield. Wil’s aim is to match the pace of business of Founder Shield’s innovative clientele to provide tailored insurance solutions at scale. He has been involved in the mobility industry since its infancy and assisted many of Founder Shield’s On-Demand and FinTech clients meet legal requirements while positioning them to rapidly expand.

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