Evertas, an insurance company focused on digital assets, recently announced an increase in coverage limits and the addition of mining operations to its coverage portfolio.
The insurer’s per-policy coverage limits on custodial crypto assets will increase to $420 million, “nearly tripling the amount of risk transfer previously available to blockchain focused projects,” according to an announcement.
It’s also adding coverage for mining operations in the amount of up to $200 million per policy. According to Evertas, these are the highest coverage limits available.
Turns out, it’s pretty difficult to insure crypto users and platforms
The policy expansions come just six months after the company raised $14 million in a Series A funding round led by Polychain Capital. Reportedly, this brings the firm’s total outside funding to $19.8 million when accounting for its initial seed funding of $5.8 million.
Evertas, a Chicago-based company, is one of only a handful of insurers focused on cryptocurrency and digital assets and, reportedly, the only given official cover holder status by Lloyd’s of London.
While most cryptocurrency exchanges cover losses to some degree, there are numerous situations where account holders could lose access to their assets that can’t be tracked through account or on-chain activity.
Per an article on Investopedia:
“Exchanges such as Binance and Coinbase claim to insure the digital funds of investors who are victims of theft. But that won’t help you if you’re forced to give up your passwords and credentials in an extortion scheme.”
The same article mentions that many insurers don’t provide comprehensive coverage, thus forcing customers to mix and match policies.
According to Evertas, its new policy limits are meant to ease this consumer pain point. The firm’s announcement says its policies now provide greater scalability and speed, making it “now possible to get a full, high-limit underwriting from a single source.”
The cryptocurrency insurance space is relatively new when compared to more traditional sectors such as home and life insurance. According to experts, less than 1% of all cryptocurrency assets are insured through traditionally underwritten policies. This represents a significant amount of exposure, especially when considering the global cryptocurrency market is expected to grow significantly by 2030.