A new cryptocurrency wallet insurance product from Coincover offers better protection than many existing custodial solutions, the firm says.
The Cardiff, U.K.-based risk management provider announced Tuesday that its insurance policy, underwritten by Lloyd’s of London, would now provide Civic wallet users up to $1 million in cover. The insurance is assigned automatically when a user registers for a Civic wallet and requires no further steps to qualify.
The firm said this is the first hot-wallet insurance offering to date that offers $1 million in protection.
Coincover told CoinDesk the policy, first announced in early March, provides the same sort of comprehensive guarantee found with credit cards and bank accounts. It also offers better cover than many existing custodial solutions, such as BitGo or Gemini, according to Sharon Henley, Coincover’s head of marketing.
“BitGo manages billions of assets under management [AUM], but their insurance is $150 million, so obviously [users are] not fully covered,” she said. That effectively means the insurance policy only covers a fraction of the total AUM.
BitGo does provide insurance on its cold wallets, raising the cover to over $100 million earlier this month. Gemini, too, offers additional insurance of up to $200 million, having set up its own insurance firm to do so.
When first announced, Coincover said it was offering its new policy to holders of BitGo’s multi-signature custodial wallets.
Henley told CoinDesk its product “can be standalone or supplemental to the insurance that BitGo provides their customers at the cold storage level.”
“Having funds insured offline as well as the option to purchase insurance for online holdings when trading and transacting is what we feel is the most comprehensive and safest way for businesses and customers to have holistic protection of their funds,” she said.
The policy automatically covers each user individually for up to a million dollars after they sign up for the wallet. Should Civic…