Navigating Cryptocurrency Insurance: A Comprehensive Guide for Your Business


In today’s digital landscape, cryptocurrencies like Bitcoin, Ethereum, Tether, and Monero have gained significant attention. With over 18,000 types of cryptocurrencies in existence as of March 2022, the cryptocurrency market continues to expand rapidly.

Blockchain technology and cryptocurrencies emerged as alternatives to traditional currencies, revolutionizing the way we transact and store value. As this industry evolves, businesses are increasingly integrating blockchain into their operations, leading to a surge in demand for specialized insurance solutions.


The growth of blockchain technology has given rise to a new breed of companies operating within this space. These companies require tailored insurance coverage to protect their operations in the volatile cryptocurrency market.

However, insurers have been hesitant to enter the cryptocurrency insurance market due to the unique risks associated with the industry and the lack of historical data. Despite this, forward-thinking insurers, such as Embroker, have recognized the need for specialized coverage and are offering innovative insurance solutions for cryptocurrency companies.

Why Do Cryptocurrency Companies Need Insurance?

Like any other business, cryptocurrency companies face a myriad of risks in their day-to-day operations. The dynamic nature of the crypto market, coupled with regulatory uncertainties, underscores the importance of insurance as a risk management tool.

Startups, which are prevalent in the cryptocurrency sector, often prioritize growth and innovation over risk management and insurance. However, neglecting insurance can leave businesses vulnerable to unforeseen events that could derail their growth trajectory.

The risks faced by cryptocurrency companies are predominantly digital in nature, with cyberattacks being a significant concern. Hackers target crypto companies due to the anonymity of cryptocurrency transactions, making them lucrative targets for theft and fraud.

Furthermore, the unique risks associated with providing cryptocurrency-related services, such as advising clients on investments, highlight the need for comprehensive insurance coverage.

What Risks Do Cryptocurrency Companies Face?

Cryptocurrency companies are particularly vulnerable to digital risks, with cyberattacks posing a significant threat to their operations. Hackers employ sophisticated techniques to breach security measures and steal digital assets, posing a significant risk to crypto companies.

Social engineering attacks, where hackers manipulate individuals into divulging sensitive information, are also prevalent in the crypto industry. Moreover, the possibility of professional errors or omissions exposes crypto companies to liability risks.

Industry-Specific Cryptocurrency Insurance Policies

To address the unique risks faced by cryptocurrency companies, specialized insurance policies are essential. These policies include:

1. Directors and Officers (D&O) Insurance: Protects company executives from claims related to their management decisions.
2. Errors and Omissions (E&O) Insurance: Indemnifies professionals against claims of negligence or errors in providing services.
3. Cyber Liability Insurance: Covers losses resulting from data breaches and cyberattacks.
4. Commercial Crime Insurance: Provides indemnity against losses stemming from cryptocurrency theft.
5. Specie Insurance: Protects digital assets stored offline in “cold” wallets.

Other Insurance Policies for Cryptocurrency Companies

In addition to industry-specific policies, cryptocurrency companies should consider basic insurance coverages essential for all businesses, including:

1. Commercial General Liability Insurance: Covers third-party injury or property damage claims.
2. Workers Compensation: Provides coverage for employee injuries and related expenses.
3. Employment Practices Liability Insurance (EPLI): Protects against claims of illegal employment practices.

Cost of Cryptocurrency Insurance

The cost of insurance for cryptocurrency companies varies based on factors such as company size, revenue, claims history, and policy limits. While insurers may be cautious about underwriting crypto businesses, implementing robust cybersecurity measures and risk management practices can positively impact insurance premiums.


Cryptocurrency companies operate in a dynamic and evolving industry, facing unique digital risks that necessitate specialized insurance coverage. As regulatory clarity improves and insurers gain confidence in the sector, the availability of tailored insurance solutions is expected to increase.

If you’re a cryptocurrency company seeking insurance coverage, our experienced brokers can help you navigate the complexities of the insurance market and find the right coverage for your specific needs. Get started by reaching out to us today.