In the evolving Web3.0 world, businesses face various risks from operational hazards to technical incidents. In our last blog post, we explained why we believe that insurance is an essential tool for crypto businesses to manage risks effectively. In this week’s blog post, we will take a deep dive into our insurance product structure, to provide you with a better understanding about the coverage OneInfinity can offer to your business.
According to Chainalysis’ report, 2022 saw over USD3.8 billion of cryptocurrency stolen by hacks and was the biggest year ever for crypto hacking.[1] In addition to the hikes in crypto hacks, crypto-related lawsuits have also increased significantly in 2022 by almost 50%[2]. These trends translate into a wide array of emerging risks for crypto businesses. On one hand, they are under extreme pressure from regulators and consumers to ensure the security of digital assets held on their platforms. On the other hand, the increased number of lawsuits also implies higher risks for crypto businesses and their management teams against potential liability claims. To address these risks, we have tailored a set of comprehensive risk management and insurance solutions for crypto businesses with a combination of digital asset insurance coverage and corporate liability insurance products.
In this blog post, we will first zoom into our digital asset insurance coverage, which focuses on protecting crypto custodians and exchanges from the loss or theft of digital assets held on their platforms. Under this branch of insurance, we have further broken the coverage down to two categories: Specie and Crime coverage.
Specie: Employee Fraud & Designated Premises Breach / Damage
Our specie coverage is designed to cover operational risks, including employee fraud and designed premises breach or damage. Employee fraud is designed to guard against theft committed by employees. We understand that despite meticulous hiring and training processes, companies still face potential internal threats, which may result in significant financial loss. Other than employee theft, we also provide coverage against loss of digital assets due to physical breach or damages at designated premises where you store your private keys. In this digital age, the importance of data and digital asset protection is self-evident. With specie coverage, you can effectively shield your private keys and other digital assets, such as cold wallets and HSMs, from losses caused by physical breaches and employee theft.
Crime: Third Party Computer Crime & Compromise of External Tech Service Provider
As shown in the study by Chainalysis, one of the major threats faced by crypto platforms is hacking. Crime is designed to cover against loss of digital assets resulting from security breach of your computer system or compromise of your technology service provider. At the same time, in response to security issues of external tech service providers, we offer Compromise of External Tech Service Provider coverage. Should their security be compromised, given how integrated these solutions are with your platform’s operations, it may result in business disruption or even severe data breaches. Our crime coverage is intended to provide you with a peace of mind against these risks.
Last but not the least…
OneInfinity is committed to developing innovative and comprehensive insurance solutions, allowing you to confidently manage your business amidst various potential risks. We understand that each business has unique risks; therefore, our professional team will customize insurance solutions based on your specific needs.
We hope that this article has provided you with a clearer picture of our digital asset insurance coverage. In the next article, we will share more about our corporate liability insurance solutions. Stay tuned!
[1] 2022 Biggest Year Ever For Crypto Hacking – Chainalysis
[2] Crypto lawsuits increased by almost 50% in 2022, study reveals (finbold.com)
More about OneInfinity: https://oneinfinity.global/
