Crypto Insurance: Buzzword in the Insurance Industry
“Crypto Insurance” is the new buzzword in the Insurance Industry nowadays.
With the advent of the Digitalization era, every industry is going to digitalize. It presents new threats and challenges for everyone.
So Crypto Insurance or also known as Blockchain Insurance is the future of Insurance by its application in Insurance Industry and through its associated risk by adopting other Industry.
What is CryptoCurrency?
“Crypto Currency” is a kind of Digital payment that is not real, it is virtual Currency.
Cryptocurrency is the future of all digital payments.
The virtual presence of this currency makes it unique for all transactions online like any other currency.
CryptoCurrency is considered the safest mode of payment due to its Digital nature.
It is protected by Crypto, which makes it impossible its double use any counterfeit.
Cryptocurrency uses Blockchain technology in the transaction, which is based on a decentralized network coupled with the distributed ledger.
The use of Blockchain technology makes it more secure and faster in comparison to present physical or existence currencies.
The valuation of these Cryptocurrencies is volatile in nature and in few years the valuation skyrocketed from billions to trillions.
It is the next-generation currency that seems to be wiped off traditional currencies.
What is Crypto or Blockchain Insurance?
Insurance is everywhere, so as to for Cryptocurrency too.
Cryptocurrency Insurance provides protection to its regulator Companies or Investors against
Cryptocurrency theft, and
Losses like Capital loss
Crypto Insurance gives a sense of security in case of any online fraud or capital losses.
Cryptocurrency or Blockchain Insurance is the future of Insurance also.
Don’t wait for starting your journey to earn recognition and a competitive edge in this new digital era.
Some of the major key covers under Crypto Insurance are:-
Cyber Liability: Provides protection against cryptocurrency loss due to malware, hacking or cyber breach
Directors & Officers’ Legal Liabilities– Any cybercrime in Corporate also attract legal liability against its Directors & Officers also. So Cryptocurrency Insurance also safeguards Directors & Officers against any legal Liability, regulatory and criminal, and shareholder lawsuits that arise due to any Cybercrime event.
Product Negligence, Errors, and Omissions: It is a kind of General Liability policy. Which provides protection to companies and their employees against losses due to their professional negligence, which results in losses to Customers’ Cryptocurrency.
Insurance companies for Crypto or Blockchain Insurance
The typical Crypto Insurance policy does not cover any losses due to the volatile nature of this currency.
But recently LIyods launches a new liability insurance policy, having a dynamic limit that increases or decreases in line with any price changes of Crypto assets as per LIyods statement.
This policy will be backed by a panel of other Lloyd’s insurers, which includes TMK and Markel, all of whom are members of Lloyd’s Product Innovation Facility (PIF).