Key takeaways:
- Evertas will add more mining insurance and raise coverage limits to $420 million per policy.
- Evertas claims its new policy constraints are intended to lessen this issue for customers.
A company that specializes in insuring digital assets, Evertas, recently stated that its coverage portfolio now includes mining activities and that its coverage limits have been increased.
According to a statement, the per-policy coverage limitations for the insurer’s coverage of custodial cryptocurrency assets would rise to $420 million, “nearly tripling the amount of risk transfer previously available to blockchain focused projects.”
Additionally, it will now provide up to $200 million in coverage per policy for mining enterprises. These are the highest coverage limits that are currently offered, according to Evertas.
The startup raised $14 million in a Series A fundraising round led by Polychain Capital just six months prior to the policy expansions. When the $5.8 million in initial seed capital is taken into account, this reportedly increases the company’s total outside funding to $19.8 million.
One of the few insurers specializing in cryptocurrencies and digital assets is Evertas, a Chicago-based business; it is also purportedly the only one to have been granted official cover holder status by Lloyd’s of London.
Even though most cryptocurrency exchanges have some form of loss insurance, there are several circumstances when account users could lose access to their funds that are not traceable through an account or on-chain activities. According to a piece on Investopedia:
“Exchanges such as Binance and Coinbase claim to insure the digital funds of investors who are victims of theft. But that won’t help you if you’re forced to give up your passwords and credentials in an extortion scheme.”
The same article mentions that many insurers don’t provide comprehensive coverage, thus forcing customers to mix and match policies.
Evertas claims its new policy constraints are intended to lessen this issue for customers. According to the company’s release, its policies now offer more scalability and speed, allowing one source to provide full, high-limit underwriting.
Comparing the Bitcoin insurance market to more established industries like life and home insurance, it is still relatively young. Less than 1% of all Bitcoin assets, according to experts, are covered by conventionally underwritten insurance. This constitutes a sizable exposure, especially in light of the predicted rapid expansion of the worldwide cryptocurrency market by 2030.
