As reported yesterday in Business Insurance, Lloyd’s of London underwriters have agreed to insure digital currency storage company, Kingdom Trust Co., against theft and destruction of cryptocurrency assets. The cover comes after almost a decade-long search by Kingdom Trust for insurance to cover its crypto-assets. According to the BI, Kingdom Trust sees the availability of insurance as a key factor in bringing institutional investors into the marketplace by dispelling concerns about lack of traditional safeguards in the emerging crypto-asset space.
In an article in the September issue of ABA Business Law Today, Hunton & Williams attorneys Lorie Masters, Sergio F. Oehninger, and Patrick McDermott discuss the increasing use of blockchain technology, the security of the technology, and insuring against the relevant risks. As they explain, the “potential disruptive uses of blockchain technology in the marketplace have been compared to that of the Internet.” Thus, businesses across industries should consider their insurance would cover risks arising out of the use of blockchain technology. The authors point out that current cyber insurance coverages leave unanswered questions about the extent of coverage for such risks.