To meet the demands of the growing cryptocurrency industry, CHES Special Risk introduces a new insurance solution for the industry.
Like any monetary asset, the risks of cryptocurrency must be protected. In recognition of this, CHES Special Risk worked closely with the London insurance market to develop the new product. With a capacity of US $ 600 million (approximately C $ 761.48 million) – the largest in Canada to date – the insurance covers cryptocurrency custodians. The insurable interest is the cryptocurrency private key held in a location designated by a third party custodian.
CHES Special Risk’s new product is developed for companies working in the cryptocurrency and blockchain fields looking for risk transfer solutions for themselves and their clients. It was also developed for financial institutions that provide cold storage service, and for cryptocurrency exchanges and digital asset managers.
Standard product coverage includes physical loss from damage to the cryptocurrency’s private key, willful and dishonest acts involving the collusion of a designated custodian, and theft occurring directly as a result of using the cryptocurrency. interest insured by a person other than the depositary while the said person is physically present in the designated premises.
Coverage can also be extended to key generation coverage; willful and dishonest acts or omissions involving the collusion of custodians appointed before the start of the insurance period when the insured interests are not located in the secured area; and willful and dishonest acts or omissions involving collusion during the insurance period when the insured interests are in secure transit.
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