Specialist insurer Beazley has announced the launch of a new Directors’ & Officers’ liability (D&O) insurance product tailored specifically for crypto companies.
According to the insurer, CryptoGuard – the first of its kind in the London and US markets – will put out capacity of up to $10m.
Designed to address the risks faced by all types of companies operating in this developing industry, the new product will support them through all stages of their life cycle; from emerging start-ups, high growth businesses and established private and public organisations.
Luisa Celentano, Underwriter, D&O Specialty Risks said: “The crypto market is growing rapidly, and becoming increasingly mainstream.
“Crypto firms face a myriad of risks from extreme volatility to a lack of regulation, and they also have to contend with different rules in different jurisdictions. One misstep can impact their financial results and business reputations, leaving senior executives in the firing line.”
CryptoGuard has been developed following four years of research by Beazley into the sector, and the cover includes access to an integrated team of underwriters and claims managers with a deep understanding of the crypto market and its evolving risk landscape.
Celentano added: “There are a limited number of specialist insurance solutions tailored for crypto businesses and with established financial institutions and banks entering the market, now is the time for the insurance industry to respond.
“CryptoGuard is a step forward in providing quality, specialist D&O protection that addresses the D&O liability risks crypto and blockchain firms and their executives face.”
The product was launched in the same month analysts at Swiss Re flagged crypto assets, alongside quantum computing, as one of the most significant emerging risks for insurers and reinsurers, with the potential to create new risks within the global financial system.
Fluid ownership, taxation, regulatory issues and other risks related to the new asset classes present insurers with fresh challenges, warned the reinsurer.