BitGo, the Palo Alto-based crypto custody provider, announced that it now offers a $100 million insurance coverage plan for all crypto assets under its custody, in addition to directors and officers liability insurance, errors and omissions insurance, and cyber theft. According to BitGo, this is the most comprehensive coverage in the industry. The plan is offered through the Lloyd’s of London insurance syndicate.
“Insurance companies never want to pay out. So they’ve reviewed us and they think they’ll never have to," BitGo’s Chief Security Officer Tom Pageler told The Block, adding that he was comforted by the length of the process because it showed Lloyd’s was doing their “due diligence.”
He said that the news was also a testament to BitGo’s commitment to security and the maturity of the industry and hoped it would spur others in the space to follow suit.
“I don’t think if we couldn’t have gotten it, I don’t think anyone could have," he said.
BitGo also took the unusual step of disclosing both the underwriter and their insurance level of $100 million. Pageler said this was intentional and that he wanted to provide a “very clean and transparent policy” and to show clients there were controls in place to make sure the payouts happened if necessary.
The firm will also provide its wallet clients the opportunity to purchase their own insurance directly through Digital Asset Services, a crypto asset insurance firm. Digital Asset Services will provide theft insurance and private key recovery services.