The move is the latest example of insurance industry stepping up to offer protection to companies that deals in cryptocurrency, a volatile and loosely regulated but rapidly growing business.
Lloyd’s of London has offered insurance coverage to Kingdom Trust, a company that stores digital currency for investors, through the protection of assets against theft and destruction.
The deal is the promising as the cryptocurrency industry looks to attract more mainstream investors, the majority of which have steered clear so far because of concerns about lack of traditional safeguards. A majority of mainstream banks do not handle crypto assets, and brand-name auditors are rarely involved with companies in who are offering blockchain and cryptocurrency related investments.
Additionally, a number of insurance companies have been not publicly disclosed that they are covering digital currency businesses, an industry in which investors have lost billions from dozens of cryptocurrency hacks, technical errors as well as fraud.