September 21, 2021 - 3 min read
On September 20, Crypto.com announced in its blog post that it has expanded its total insurance coverage to $750 million. This was led by Arch Underwriting at Lloyd’s Syndicate 2012. The renewed policy is effective from September 6, 2021, and is the largest insurance cover that Crypto.com has ever secured. It is also one of the industry’s largest insurance programs. The insurance covers the cold storage assets of Crypto.com on the Ledger Vault, the company’s custodial partner.
Insurance is a critical tool for businesses around the world to indemnify themselves against various kinds of risks and damages. Companies operating in the digital asset industry are no strangers to the importance of insurance, especially since the industry is new and therefore susceptible to financial risks occurring from theft or fraud.
Since November 2019, Ledger Enterprise itself has been covered by a crime insurance policy, which pertains to digital assets secured by the Ledger Vault platform.
Insurance companies have to be meticulous in their appraisal of the security arrangements of the digital assets of the companies that want to be insured. The insurance of Ledger Enterprise involved a rigorous evaluation of the hardware and software security of Ledger Vault, along with the governance policies that were implemented for the custody of the digital assets. The confidence of the insurer in the solution is indirectly reflected in the coverage that they provide to the business.
James Croome, Head of Fine Art & Specie for Arch Underwriting at Lloyd’s Syndicate 2012, said: “A complete and detailed understanding of the custodial process is one of the most critical, and time-consuming, stages in the underwriting of any digital asset risk. By choosing to partner with Ledger Vault, a known service provider to insurers, Crypto.com was not only able to provide underwriters with the necessary confidence in their custodial security, but they were also able to obtain a policy in a much shorter time frame than is ordinarily the case.”
The increase in the coverage is great news for over ten million customers of Crypto.com. This policy offers them protection against physical damage or destruction and third-party theft, and the fact that this coverage is one of the industry's biggest should put the customers’ minds at ease. Ledger Enterprise Solutions is proud to be a contributing factor in the expansion of the insurance cover of Crypto.com.
Alexandre Lemarchand, Vice President of Global Sales & Partnerships at Ledger Enterprise Solutions, said: “We share with our clients the belief that security and data privacy are the foundations of achieving mainstream cryptocurrency adoption. Ledger Enterprise’s role is to provide our partners with the tool that enables them to move forward in their digital asset journey. We are proud that our technology is trusted by leading insurance companies, allowing our clients like Crypto.com to add specific insurance policies on top of the Vault $150M crime policy. “