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Digital Assets Insurance

Our digital asset taskforce specialises in digital asset risk strategy and transfer with worldwide experience in risk consulting and key related insurance lines.

Navigating the digital asset landscape with confidence

In the rapidly evolving world of digital assets and blockchain, regulatory uncertainty presents significant challenges. At WTW, we prioritize compliance and risk management to protect your digital investments. Our approach is informed by a deep understanding of the complexities involved in safeguarding both first and third-party assets, as well as crypto mining infrastructure.

Innovative insurance solutions

Drawing inspiration from industry leaders with experience across both traditional and non-traditional Financial Institutions, we incorporate insurance solutions tailored for the digital asset ecosystem. These include:

  • Specie/custody coverage
  • Directors and Officers Liability (D&O)
  • Crime
  • Professional Indemnity / Errors & Omissions
  • Cyber risk management and insurance

Our solutions are designed to transfer risk effectively, freeing up capital and other valuable resources for innovation to support your growth and longevity.

Expert guidance from our specialized team

Our dedicated team of experts is equipped with the knowledge and experience to navigate the complexities of blockchain and digital assets. We have specialist staff working collaboratively across the United Kingdom, the United States of America, Bermuda, Hong Kong and Singapore who are committed to providing you with unique insights and risk-transfer strategies needed to thrive in this dynamic environment.

FAQs on digital asset insurance

Digital asset specie/custody coverage encompasses protection against theft or physical damage of cold-storage media on premises or loss of private keys safeguarded by trusted custodians like third-party custodians, exchanges, and major financial institutions. It is the most frequently purchased type of Digital Assets insurance and limits up to $1bn are available in the insurance market.

Total losses from crypto related hacks in 2023 amounted to $3.3bn (Source: Merkle Science). As a result, safeguarding you and your clients Digital Assets are crucial to ensure the ongoing financial stability of your business and to protect you from reputational damage. Digital asset insurance policies cover a wide range of risks, including coverage for specie/custody, crime (covers first party losses arising from employee theft and third party losses resulting from cyber hacks, social engineering or extortion), directors and officers (D&O) liability, professional indemnity/errors & omissions, cyber insurance, and property insurance for miners. Bespoke insurance solutions for MiCAR, slashing and smart contract failure are also available however the number of insurance providers who can provide these solutions are limited.
Digital asset insurance policies cover a wide range of risks, including coverage for custody/crime/theft loss, directors and officers (D&O) liability, professional indemnity/errors & omissions, cyber insurance, and property insurance for miners.
Generally, insurance providers do not offer policies to protect against the insolvency of staking or lending platforms.
Typically, insurance policies do not cover losses resulting from major price shifts in the cryptocurrency market.
Policy limits for crypto-related coverage typically start at $500,000 USD.
The pricing for digital asset insurance is highly dependent on the specific risks and coverage needs of the insured. Your broker can provide detailed pricing information.
When selecting a digital asset insurance policy, it’s essential to assess all terms and conditions which includes policy coverage, applicable limits/sub-limits, extensions, exclusions and reputation of the Insurer(s).

Disclaimer

WTW offers insurance-related services through its appropriately licensed and authorised companies in each country in which WTW operates. For further authorisation and regulatory details about our WTW legal entities, operating in your country, please refer to our WTW website. It is a regulatory requirement for us to consider our local licensing requirements.

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Connect with WTW’s Digital Asset Taskforce

Engage with our Digital Asset taskforce today to explore how we can support your needs with comprehensive digital asset risk transfer and mitigation strategies

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