To reduce the risks associated with owning cryptocurrency and give owners more peace of mind, crypto wallet service, BitGo announced Monday that it has partnered with the top U.S based Insurance Firm, Lloyd’s of London.
The purpose of the partnership is to provide cryptocurrency owners using BitGo Wallet or Custodial Offering with comprehensive insurance covers up to $100 million. The insurance cover known as Lost Key Cover could be redeemed if the —
- Crypto owner losses their private keys to a third party hack or theft
- Crypto owner suffers physical loss or damage to private keys
As per the release, customers can purchase the insurance coverage annually or based on their demands through Digital Asset Services, an insurance provider operating under the purview of the Financial Conduct Authority (FCA), the United Kingdom’s financial services regulator.
BitGo also asserted that both underwriters of the insurance coverage, namely, Digital Asset Services and Lloyd’s of London have carried out a “thorough and rigorous assessment of BitGo’s hardware, software, and physical security, as well as the company’s policies and procedures.”
A Lloyd representative, Nicholas Edwards, confirmed BitGo’s earlier comments by saying in the release,
“We have been working hard to tailor a bespoke insurance product for BitGo, in this new, rapidly developing and complex sector. 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.”
Crypto industry participants have long held that the provision of insurance coverage for digital assets could encourage more people to invest in cryptocurrencies since it partly minimizes the risk associated with the indefinite loss of private keys.
With U.K crypto owners finally able to purchase one through BitGo, an increase in adoption can be expected in the coming months.
Meanwhile, Coinfomania reported in August that Lloyd’s of London is also offering insurance coverage for cryptocurrency firms who wish to secure their assets.