TL;DR Breakdown
- Evertas, an insurance company focused on digital assets, has tripled its coverage limits for custodial crypto assets to $420 million per policy, offering increased risk transfer for blockchain projects.
- The company has also introduced coverage for mining operations, providing up to $200 million per policy, the highest coverage limit in the industry.
- Evertas’ expansions come after raising $14 million in funding and being granted official cover holder status by Lloyd’s of London, signaling growing confidence in the crypto sector.
Evertas, a Chicago-based insurance company specializing in digital assets, has announced significant expansions to its coverage portfolio. The insurer has tripled the per-policy coverage limits for custodial crypto assets, now offering up to $420 million in coverage. This increase aims to provide blockchain-focused projects with nearly triple the previously available risk transfer. Additionally, Evertas has introduced coverage for mining operations, offering up to $200 million per policy, which is the highest coverage limit currently available in the industry.
The policy expansions come just six months after Evertas raised $14 million in a Series A funding round led by Polychain Capital, bringing the company’s total outside funding to $19.8 million. Evertas is one of the few insurance companies focused on digital assets and has been granted official cover holder status by Lloyd’s of London, further solidifying its position in the market.
Evertas’ expanded coverage boosts confidence in crypto sector
Evertas’ decision to increase coverage limits for custodial crypto assets and introduce coverage for mining operations is seen as a significant boost to the crypto sector. The move addresses concerns surrounding hacks and thefts, which have plagued the industry and led to a lack of comprehensive insurance coverage. Currently, only 2-3% of global crypto assets are believed to be insured through traditional underwritten policies. Evertas aims to alleviate this issue by offering higher coverage limits and streamlining the underwriting process.
The increased coverage limit of $420 million per policy for custodians or exchanges is the highest in the industry, according to Evertas CEO J. Gdanski. This coverage specifically applies to thefts of private keys held by custodians, providing greater protection for assets. The previous single policy limit for Evertas was $5 million, making this expansion a significant leap in coverage availability.
Evertas’ Lloyd’s of London cover holder status allows the company to underwrite complex risks associated with crypto assets, making it a trusted insurance provider in the industry. The authorization from London-based Arch Insurance International to increase coverage limits demonstrates the growing confidence of conservative entities, such as the insurance industry, in the crypto space.
The expanded coverage comes at a crucial time for the industry, as crypto losses from thefts and hacks reached $400 million in the first quarter of this year, according to TRM Labs. The insurance industry’s increasing interest in insuring the crypto sector reflects its recognition of the business potential and demand in this emerging space.
As Evertas continues to provide higher coverage limits and innovative insurance solutions for digital assets, it plays a vital role in fostering trust, stability, and protection within the crypto sector. The company’s expansion signals a growing market for comprehensive insurance coverage in the ever-evolving world of cryptocurrencies.