Innovation Insurance Group

  • Home
  • About
    • Company Profile
      • Annual Reports
        • 2014 Annual Report
        • 2013 Annual Report
    • Ty R. Sagalow
    • Lisa Vivori
  • Our Services
    • Expert Witness
    • InsurTech
    • Product Development
      • Product Development Case Studies
    • Directors and Officers Insurance
    • Cyber Risk Insurance
    • Bitcoin Insurance Agency
      • BitCoin 101
      • Bitcoins FAQ
      • Bitcoin Video Series
      • Publications and Interviews
  • News
    • Speaking Engagements
    • IIG in the News
    • Bitcoin Industry News
    • Events
    • World Risk and Insurance News
      • Web Series Hosted
        by Ty Sagalow
        • What’s New in Insurance?
        • Innovations in Insurance
      • Interviews of
        Ty Sagalow
    • Gallery
  • Leadership
    • Publications and Interviews
      • Innovation and Product Development
      • D&O Insurance
      • Cyber Risk Insurance
      • Reputation Risk
      • Bitcoin
    • Innovation
    • Emerging Risks
      • InsurTech
      • Reputation Risk
      • Crowdfunding
      • Bitcoin Risk
      • Cyber Risk
    • Thoughts from Industry Leaders
  • Clients
    • Clients
    • Testimonials
    • Partners
      • Advisen, Ltd.
      • Hanover Stone Partners, LLC
      • CLM Advisors
  • Lemonade Book
    • Book Store – Buy the Book
    • Book Overiew
    • Interviews with the Author
    • Book Signing Gallagy
  • Contact Us
You are here: Home / Bitcoin Industry News / BREAKING NEWS: BitGo Unleashes FDIC-like Insurance Ushering in a New Era of Bitcoin Security (Bitcoin Magazine)

February 25, 2015

BREAKING NEWS: BitGo Unleashes FDIC-like Insurance Ushering in a New Era of Bitcoin Security (Bitcoin Magazine)

FEBRUARY 25, 2015, BITCOIN MAGAZINE

BitGo, a leader in Bitcoin security, announced Tuesday it had secured first-of-its-kind insurance coverage for bitcoin theft through the Bitcoin Financial Group from the global, A-rated XL Group insurance companies. With this announcement, BitGo joins the list of industry leaders including Xapo and Coinbase that offer insurance for bitcoin stored using their services.

All of BitGo’s paying customers are eligible for protection under the XL policy for up to $250,000 in covered theft claims, just by signing up for BitGo services. Customers can increase the amount of protection available to them for an annual fee.

“We are proud to partner with XL Group and Innovation Insurance Group on this game-changing insurance product,” said Will O’Brien, CEO and co-founder of BitGo. “The entrance of an underwriter of XL Group’s size and reputation signals that the technologies and standards for Bitcoin security, like multi-sig, have reached a threshold of viability to take the industry to the next level. For our large enterprise customers, an insurance-backed guarantee is the final missing ingredient for peace of mind in a robust security software offering.”

The customized insurance product, exclusive to BitGo, was structured in collaboration with XL Group and Innovation Insurance Group, LLC. It is a robust cyber and professional liability policy that goes well beyond narrow crime policies previously adopted by some bitcoin vault providers. BitGo partnered with Ty Sagalow, president of Innovation Insurance Group LLC to develop and negotiate this unique product. This was an obvious choice, according to O’Brien. “Ty Sagalow has over thirty years of experience in launching innovative products in the insurance industry. He was instrumental in structuring this unique bitcoin insurance policy with XL Group.”

BitGo customers who opt-in to the program are protected from acts, errors or omissions of BitGo technology, processes and employees, including external hacking incidents and employee theft. Both hot wallets and cold storage are eligible for coverage in the policy.

This insurance coverage is unique because in the event of a covered loss, the policy would reimburse BitGo’s customers directly for the value of the lost or stolen bitcoin. This is similar to how the Federal Deposit Insurance Corporation (FDIC) operates; it reimburses bank depositors directly for the value of their deposits (up to $250,000) in the event a bank is unable to return those deposits.

“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.

“BitGo’s multi-signature architecture delivers a significant level of security, realizing how seriously they take cyber security. We confidently developed a comprehensive insurance solution that offers BitGo and their customers another layer of protection,” he added. In addition, the policy provides BitGo unprecedented ability to work directly with its customers in the management and resolution of such incidents

Coinciding with the announcement, BitGo said it would be offering two additional major services to its customers — BitGo Enterprise™, the leading institutional bitcoin web wallet, and BitGo Platform API™, a highly scalable set of tools and services that allows any developer to rapidly deploy state-of-the-art operational infrastructure for their Bitcoin business. The bitcoin theft insurance provided by XL Group covers the risk of theft or loss of bitcoin secured with both services.

“This is a critical step in professionalizing the Bitcoin ecosystem. BitGo now offers the leading institutional multi-sig web wallet and platform API. By securing a comprehensive insurance policy from XL Group, BitGo has again set the bar for bitcoin security and customers can feel even more confidence and peace of mind about using the BitGo platform,” said O’Brien.

Also see 

Read Official Bitgo Press Release

Read CoinDesk Article

Read Bitcoin Magazine Article

Read CyptoCoins News Article

Read WSJ Article

Print Friendly, PDF & EmailPrint Friendly
Share

Filed Under: Bitcoin Industry News, Publications and Interviews

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Innovation Insurance Group, llc

Offices at Short Hills
51 John F. kennedy Parkway,
First Floor West
Short Hills, NJ 07078
917-620-2174 (Ty's cell))
973-261-5624 (office)
contact@innovationinsurancegroup.com
tysagalow@innovationinsurancegroup.com

Expert Witness

Ty Sagalow head shotTy Sagalow's unique background in legal, underwriting, policy drafting and claims – and his designation as a “qualified insurance expert” by the United States District Court for the Southern District of California – offers attorneys an unparalleled resource in D&O, E&O and Cyber insurance coverage disputes. He was also named "Most Helpful Expert" in a recent $8.7M coverage decision.

Mr. Sagalow served as Chief Underwriting Officer and General Counsel for AIG Executive Liability (formerly National Union Fire Insurance Company of Pittsburgh, PA), the world’s largest carrier of Directors and Officers Liability and Professional Liability Insurance. As General Counsel, Mr. Sagalow personally wrote or led teams that wrote all the D&O policies and many of the professional liability policies that AIG produced between 1988 and 2000 – policies which continue to serve as the foundational wording for the D&O and professional liability policies in the market today. As AIG Executive Liability’s Chief Underwriting Officer, Mr. Sagalow was charged with all underwriting interpretations and decisions for AIG D&O/E&O policies. In 2009, Mr. Sagalow headed up the team that rewrote all D&O policies for Zurich North America.

Ty is a cum laude graduate of Georgetown University Law Center and holds a LLM from New York University School of Law.

Bitcoin Insurance

Combining his talents as a network security insurance expert and an insurance product development expert, Ty Sagalow is the leading expert on the unique risk and insurance needs of the bitcoin industry.

With the successful sale of BitSecure(tm), the first bitcoin theft insurance policy in February of 2015, he is the first to create a sustainable, robust insurance policy to cover the theft of bitcoins and other virtual currency backed by an A-Rated, global “top 10” Property and Casualty insurance company.

Company Profile

Innovation Insurance Group is an insurance consulting firm and insurance brokerage founded by 30-year insurance executive, Ty R. Sagalow, former Chief Underwriting Officer, General Counsel and Chief Innovation Officer at AIG, and former Chief Innovation Officer at Zurich, NA and Tower Group. IIG focuses on three core practice groups: product development, expert witness services (primarily in the Management and Professional Liability areas), and bitcoin industry brokerage services.

Learn more about Ty R. Sagalow
Learn more about Innovation Insurance Group
Learn more about InsurTech Consulting
Learn more about Bitcoin Insurance Agency

Innovation Insurance Group, LLC BBB Business Review

Featured Topics

  • InsurTech
  • Innovation and Product Development
  • Directors & Officers Liability Insurance
  • Cyber Risk Insurance
  • Reputation Risk
  • Bitcoin Risk and Insurance
  • Emerging Risks
  • Interviews of Ty Sagalow
  • Gallery
  • Testimonials
  • Speaking Engagements

Featured Video Series

  • "What’s New in Insurance with Ty Sagalow"
  • "Innovations in Insurance hosted by
    Ty Sagalow"

Recent Speaking Events

  • CIIA Conference: Innovation, Culture and Technology
    May 13, 2021, Chili (Virtual)
  • Latin American Conference New Perspectives and Innovations for the Future of Insurance
    Nov 4, 2019, Mendoza, Argentina
  • Reactions North America Re/Insurance Conference
    Sept 26, 2019, New York
  • Global InsuTech Conference
    June 18, 2019, New York
  • InsideTech
    June 13, 2019, New York
  • Latin America Reactions Conference, InsurTech
    May 23 2019, Miami
  • AIMU/MICA Marine Insurance - A Global Perspective: The Future of Insurance
    June 21, 2018, New York
  • 12th Property Innovation Summit: InsureTech and the Lemonade Way of Claims
    May 2, 2018, St. Petersburg, FL
  • Italy Insurance Forum
    April 11, 2018, Milan, Italy
  • FST: The Future of Insurance
    March 6, 2018, Sydney, Australia
  • Artificial Intelligence Conference
    January 29 - 30 - Miami Beach
  • Kennedys leadership summit: What Law Firms Can Learn from InsurTech
    January 20, London
  • All Speaking Engagements
    • 2016 Insurance Consultants Award
      2016 Insurance Consultants Award
    • 2017 Insurance Consultants Award
      2017 Insurance Consultants Award
    • 2017 Insurance Expert Witness of the Year
      2017 Insurance Expert Witness of the Year
    • AI 2017 InsurTech Consultant of the Year Award
      2017 InsurTech Consultant of the Year Award - AI International
    • 2018 Best Advisor Award – M&A Today
      2018 Best Advisor of the Year - M&A Today
    • 2018 Best Consulting Firm – Lawyers International
      2018 Best Consulting Firm - Lawyers International
    • 2018 Best Advisor of the Year - Corporate USA Today
      2018 Best Advisor of the Year - Corporate USA Today
    • 2018 Insuretech Consultant of the Year - Business Excellence
      2018 Insuretech Consultant of the Year - Business Excellence
    • 2019 50th Fasting Growing Company
      2019 50th Fasting Growing Company

    Copyright © 2023 Innovation Insurance Group · Offices at Short Hills · 51 John F. Kennedy Parkway, First Floor West · Short Hills, NJ 07078 | Site Map | Log in