Bitcoin Insurance Agency provides Bitcoin Security Leader BitGo with First-Ever Bitcoin Theft Insurance Policy purchased through Global A-Rated Insurance Provider
FEBRUARY 25, 2015, NEW YORK. Bitcoin Insurance Agency though its operating company BitCoin Financial Group, LLC announced the first successful design and purchase of a true Bitcoin Theft Insurance Policy. BitSecure™, a proprietary insurance policy designed by the Company was created for BitGo, Inc., the leader in Bitcoin security platform and a pioneer of multi-sig technology. Bitcoin Financial Group worked closely with the insurance carrier providing the coverage, a well known Global A-Rated insurer. The policy provides a robust cyber and professional liability insurance that goes well beyond narrow crime policies previously adopted by some bitcoin vault providers. BitGo customers who opt-in to the program are protected from any act, error, or omission of BitGo technology, processes, and employees, including external hacking incidents and employee theft. Both hot wallets and cold storage are eligible for coverage under the policy. In the event of a covered loss, the policy would reimburse BitGo’s customer, as a direct loss payee, for the full value of the stolen insured bitcoins, subject to the full terms of the policy. In addition, the policy provides BitGo unprecedented ability to work directly with its customers in the management and resolution of such incidents.
“In collaborating with BitGo and Innovation Insurance Group, we tailored a first-of-its-kind insurance product to help protect the rapidly growing bitcoin industry,” said John Coletti, Chief Underwriting Officer, Cyber, and Technology Insurance, XL Group.
“We have seen early attempts at insurance in the bitcoin market, such as those based on a captive model funded with cash reserves or “crime” policies that solely cover employee theft of cold storage keys,” said Ty Sagalow. “While this was suitable for Bitcoin’s formative years, it does not scale to the requirements of today’s ecosystem. BitGo’s multi-signature technology alters the threat profile to the point that a properly balanced insurance product can for the first time be brought to market at a price in line with typical cyber risk.”