Reading 2 minutes Views 8 Published Updated
Evertas, a digital asset insurance company, recently announced an increase in coverage limits and the addition of mining operations to its coverage portfolio.
According to the announcement, the insurance coverage limits for custodial cryptoassets for each policy will increase to $420 million, “nearly tripling the amount of risk transfer previously available for blockchain-focused projects.”
It also adds coverage for up to $200 million in mining operations per policy. According to Evertas, these are the highest coverage limits available.
Related: It turns out to be quite difficult to insure users and platforms of cryptocurrencies
The policy expansion comes just six months after the company raised $14 million in a Series A funding round led by Polychain Capital. This reportedly raises the firm’s total external funding to $19.8 million, with initial seed funding of $5.8 million.
Evertas, a Chicago-based company, is one of a handful of crypto and digital asset insurance companies, and reportedly the only one to receive official insurer status from Lloyd’s of London.
While most cryptocurrency exchanges cover losses to some extent, there are many situations where an account holder can lose access to their assets that cannot be traced through the account or online activity.
According to an article in Investopedia:
“Exchanges such as Binance and Coinbase claim to insure the digital funds of investors who have been victims of theft. But it won’t help you if you’re forced to give up your passwords and credentials in a ransomware scheme.”
The same article mentions that many insurers do not provide comprehensive coverage, forcing customers to mix and match policies.
According to Evertas, their new policy restrictions are meant to ease that consumer pain. The firm said in a statement that its policy now allows for greater scalability and speed, making it “now possible to get full underwriting with high limits from a single source.”
Cryptocurrency insurance is relatively new compared to more traditional sectors such as home and life insurance. According to experts, less than one percent of all cryptocurrency assets are insured with traditional policies. This represents a significant risk, especially considering that the global cryptocurrency market is expected to grow significantly by 2030.