Lloyd’s of London has provided Insurance coverage for digital currency storage at Kingdom Trust, to protect against the theft and destruction of $12 billion worth of assets. Kingdom Trust has been looking for Insurance since it launched in 2010. This is the latest example of a once – reticent Insurance Industry stepping up to offer protection to companies that store Crypto currency a volatile and loosely regulated, but rapidly growing business.
Part of the reason the young Crypto currency Industry couldn’t get Insurance coverage since it launched in 2010, was the lack of troves of data that Insurers usually rely on in designing and Pricing Coverage. Most Insurers avoid coverage for Coins kept online, or in ‘hot storage’ because of the high risk of hacking and will only cover offline “Cold Storage” which also generally preferred by Cryptocurrency companies.