The top 3 best cryptocurrency insurance companies.
The insurance industry is a very big industry in the US. In fact as at 2020 the industry was worth a mega $1.28 trillion. And it is still growing.
We’re used to having medical insurance. We also have lives and cars insurance. Some of us even insure our businesses, landed properties and other forms of assets. But today the insurance industry is going beyond some of the traditional items we know.
The multi-trillion-dollar insurance industry is beginning to cover a lot more than you would want to imagine. For example, Legendary rocker Bruce Springsteen has his voice insured for $6 million. Traveler’s Insurance covers not just for accidents but costs related to kidnapping. Pets are insurable, too. And the list goes on.
And most recently the topic of cryptocurrency insurance is also ongoing. So today we are looking at the few companies that have decided to risk on pioneering this. So below is a list of cryptocurrency insurance companies for your exploration.
What is Cryptocurrency Insurance?
First, let’s look at insurance in general.
Insurance is a practice or arrangement by which a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.
Cryptocurrency insurance therefore is the type of insurance policies specifically designed to protect crypto investments against thefts, losses or other forms of cyber attacks. Experts have predicted that insurance as a means of responsible risk management is the next step in cryptocurrency’s ongoing evolution.
Frequently Asked Questions
What is Cryptocurency Insurance?
Cryptocurrency insurance therefore is the type of insurance policies specifically designed to protect crypto investments against thefts, losses or other forms of cyber attacks
Is Cryptocurrency insured by the US government?
No. The federal government provides insurance for cash and deposits of conventional securities, like stocks and bonds But no insurance for cryptocurrency assets -- at least for now.
Does private insurance exist for cryptocurrency?
Yes and that is the hope of all crypto investors for now. Though it is still a nascent industry, and protection is extremely limited.
Who are the top crypto insurance companies in the world?
Lloyds Insurance
AON Insurance
Kase Insurance
Is cryptocurrency insured by the US government?
No. The federal government provides insurance for cash and deposits of conventional securities, like stocks and bonds But no insurance for cryptocurrency assets — at least for now.
An independent agency of the federal government, the Federal Deposit Insurance Corporation (FDIC), generally insures up to $250,000 per person, per bank. It covers all checking accounts, savings accounts, money market deposit accounts and certificates of deposit. Yet, it currently doesn’t cover cryptocurrency.
However, the FDIC is considering it. In an initiative called the Crypto-Asset Policy Sprint, the FDIC has partnered with the Federal Reserve and the Office of the Comptroller to study cryptocurrency and coordinate “policies for how and under what circumstances banks can engage in activities involving crypto assets,” according to FDIC Chairman Jelena McWilliams.
However, we don’t know how long this process will take or if the FDIC will decide to jump into the space at all.
Insurance on deposits at brokerage accounts for the purpose of purchasing securities currently falls under the Securities Investor Protection Corporation. Representatives from both the SIPC and the FDIC confirmed that neither currently insures crypto assets.
That means there’s no federal protection for your cryptocurrency. As far as the government is concerned, you’re on your own. But there is hope all the same.
Does private insurance exist for cryptocurrency?
Yes and that is the hope of all crypto investors for now. Though it is still a nascent industry, and protection is extremely limited. Most crypto assets are not currently covered by insurance. And that is understandable. The major reason being due to the relative immaturity of the cryptocurrency market. Add that to the volatility of crypto coins.
The types of private crypto insurance that exist today are not currently targeted for consumers. They are mainly bought by exchanges and crypto wallets. The coverage includes crime and theft, custodial insurance coverage and business insurance.
Since crypto insurance exists primarily on the exchange and wallet level, whether you’re covered as a crypto purchaser depends on the crypto services you use.
Can you purchase personal crypto insurance?
Yes. There is a popular carrier that includes direct-to-consumer offerings. It is called Breach Insurance. Breach’s “Crypto Shield” product is the first regulated insurance product for crypto investors.
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Let’s now look at the top cryptocurrency insurance companies you can work with too.
Cryptocurrency Insurance Companies
1. Lloyds
Lloyds is the first in our list of best cryptocurrency insurance companies. It is one of the world’s top insurance marketplace that brings together experts who share intelligence, judgement, capital and risk to create a braver world. And it is equally one of the pioneers of cryptocurrency insurance. The insurance policy was launched to protect cryptocurrency held in online wallets against theft or other malicious hacks.
Lloyds Crypto Insurance is so flexible that one can insure as little as £1,000. Lloyds Crypto Insurance policy was created in conjunction with Coincover.
It is a new type of liability insurance policy with a dynamic limit that increases or decreases in line with the price changes of crypto assets. This means that the insured will always be indemnified for the underlying value of their managed asset even if this fluctuates over the policy period.
2. AON Cryptocurrency Insurance
The second name in our list of cryptocurrency insurance companies is AON Plc.
Aon is a British-American multinational professional services firm that sells a range of financial risk-mitigation products. Their products include insurance, pension administration, and health-insurance plans. Aon has approximately 50,000 employees in 120 countries.
In March 2021 the company announced that it is going into decentralized finance (DeFi) insurance. The world’s second-largest insurance intermediary embarked on a pilot with Nayms, an insurtech platform that allows cryptocurrency holders to provide decentralized insurance cover against losses due to hacks or buggy software.
Also involved in the project are Relm Insurance, a Bermudian insurer that specializes in digital assets. Teller Finance, an automated matchmaker between investors’ assets and crypto risk liabilities is also in the picture.
3. Kase Insurance
Kase Insurance is one of the leading cryptocurrency insurance companies in Toronto. It boasts years of experience and also has a highly specialized team. Kase is renowned for its customer-centric approach that sets it apart from other insurance firms.
It has been recognized as a leader in customer service and innovation. And guess what? Kase is always looking for ways to improve heir service even more. It remains one of the few companies in Canada that provides cryptocurrency insurance. And it is this innovation and willingness to move with the times that has taken the KASE Insurance name to the very top.
Kase Crypto insurance covers:
•Exchanges
•Payment processing
•Mining
•Custodians
•Financial services (platforms)
•Wallets
•Infrastructure
Conclusion on CryptoCurrency Insurance Companies
Cryptocurrency insurance is still an emerging sector. Not many insurance companies are ready to take a risk on it. And the reason is quite understandable the chief among them being the volatility of crypto coins. However there are some companies that have taken the lead as we continue to watch the direction crypto insurance goes in the coming years.
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