BitGo, a provider of digital asset financial services, announced Tuesday that Lloyd’s will cover custodial assets held in offline storage accounts for up to $100 million.
The $100 million covers digital assets where the offline private keys are held 100 percent by BitGo, Inc. or BitGo Trust Company, at no additional cost to BitGo clients, in the event of third-party hacks or theft of private keys, insider theft of private keys, or physical loss or damage of private keys.
BitGo said it is also working with Woodruff-Sawyer & Co. and Paragon International Insurance Brokers Ltd. to accommodate dedicated limits to individual customers
In addition, BitGo Business Wallet clients can buy Theft Insurance and Lost Key Cover, a key recovery service, through Digital Asset Services, an insurance provider overseen by the Financial Conduct Authority, the UK financial services regulator. The Lost Key Cover is will be available for Business Wallet clients to purchase either as an annual subscription or when needed.
The announcement also notes that BitGo is covered by corporate insurance policies, including D&O, E&O, and Cyber Theft, as part of comprehensive set of protections.
Nicholas Edwards, Head of Fine Art & Specie, AmTrust at Lloyd’s, described the steps leading to the provision of coverage in a media statement. “We have been working hard to tailor a bespoke insurance product for BitGo, in this new, rapidly developing and complex sector,” he said. ”Following a thorough review of BitGo’s security and controls we are delighted to have delivered an innovative solution that enables our client to develop and grow its business with confidence and security.”
BitGo confirmed that the insurance followed a thorough and rigorous assessment of BitGo’s hardware, software, and physical security, as well as the company’s policies and procedures by the underwriters involved.