Fintech

Insurance for Cryptocurrency Companies

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Overview

Thousands of cryptocurrencies exist in the digital marketplaces today, far more than the number of fiat currencies. Although cryptocurrency isn’t anything new, this industry is often viewed as emerging, mainly because of the uptick in pace. On that note, cryptocurrency markets often experience severe fluctuations, making investment manias and panics a reality. 

Companies operating in this space must be highly resilient. In addition to the extreme highs and lows, regulatory bodies typically respond to the cryptocurrency industry aggressively or with complete indifference. Recently, the Biden Administration issued an Executive Order regarding responsible innovation in the crypto space. We expect more regulations to unfold soon, further complicating this fast-paced industry.

Why is Insurance for Cryptocurrency Companies Important?

Neither SPIC nor the FDIC insures crypto assets, so there is little federal protection for the digital exchanges. Cryptocurrency companies must navigate through the complexity of cybersecurity with little (or inconsistent) guidance from the government or various regulators lighting the way. Unsurprisingly, the risk of malware and other cybersecurity threats is incredibly high in this industry.

Many cryptocurrency companies have difficulty attracting and retaining crypto-competent employees, not to mention juggling the frustrating market volatility. Data protection and privacy controls are another top priority. Like any other business, cryptocurrency companies must handle their finances savvily, which can be a chore in such a unique industry. Insurance is critical for cryptocurrency companies to protect digital assets and their longevity in the industry.

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Regulatory Inconsistencies

The government’s approach to cryptocurrency has varied from aggressive to indifferent. Recently, we’ve experienced increased awareness from US regulators regarding responsible crypto innovations.

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Human Resources

Although cryptocurrency isn’t new, CEOs face challenges recruiting crypto-competent workers. More than ever, cryptocurrency companies must offer highly competitive employee benefits to attract and retain top talent.

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Market Volatility

Like any investment, cryptocurrency companies must ride the ebb and flow of the open market. What’s more, headlines seem to influence cryptocurrency markets more intensely than others. These fluctuations are often tricky to navigate.

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Hackers

Cryptocurrency exchanges are digital, making them vulnerable to cybercriminal attacks, malware, and technical glitches. Sadly, the pandemic created a digital environment ripe for costly cyber threats.

Types of Cryptocurrency Companies that need insurance

  • Bitcoin exchange
  • Electronic trading platform
  • Asset management
  • Peer-to-peer lending
  • Decentralized application
  • Gaming
  • Digital currency exchange
  • Fintech
  • Payments
  • Metaverse
  • Open-source software
  • Marketplace

Cryptocurrency Frequently Asked Questions

The cost of insurance for Cryptocurrency 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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