Due to the nature of the cryptocurrency sector and its unique set of characteristics, it is an attractive target for cyberattacks, therefore the security risk of the sector will never be completely eliminated. However, there are steps that can be taken to mitigate these risks.
Cryptocurrency insurance gives investors and businesses a way to safeguard their digital fortunes against a number of potential threats. Millions of dollars worth of digital currencies are being stolen every single week, leaving investors and business owners powerless as the anonymous nature of this sector essentially covers the criminals’ tracks and leaves the investor out of pocket.
Cryptocurrency insurance policies are designed to provide protection against cryptocurrency theft, losses as well as general cryptocurrency capital loss. Insurance as a means of responsible risk management is the next step in cryptocurrency’s ongoing evolution.
Cryptocurrency companies like Blockchain and cryptocurrencies alike are being targeted by online criminals because of the very things that make them such an appealing alternative to fiat currency: anonymity, availability and accessibility. For example, the relatively short history of Bitcoin is littered with stories of large-scale hacks, and these are so widespread that a small-time investor is exposed to just as much risk as a large-scale exchange.
Cryptocurrency insurance provides some protection against such eventualities, giving the investor the peace of mind that has, until now, simply not existed in the cryptocurrency sector. It guards against loss, which means investors can build and trade their fortunes without worrying that a single hack or malicious attack will eradicate all of their fortunes.
Insurance for cryptocurrencies is important when you take the instability of the cryptocurrency ecosystem into consideration.
The valuation of cryptocurrencies has recently skyrocketed and are trading for billions of dollars and have a combined market cap of around $300 billion, an amount that is predicted to be as high as $5 trillion in a few short years. This has resulted in substantial thefts of online wallets and exchanges. The average investor holds thousands of dollars worth of these digital coins, and because these coins are held in a virtual space, and not a physical vault, they are more exposed.
Cryptocurrency investors and businesses don’t have the luxury of the same forms of protection and security as other more tangible industries, and that’s where cryptocurrency insurance comes in.
This insurance provides the security that an investor needs and allows them to grow their investment safe in the knowledge that they will be covered in the unlikely event it is stolen.
Cryptocurrency insurance does not guard against volatility, which is rife in this sector, but it does guard against theft and loss. Our cryptocurrency insurance is available to consumers throughout Canada and offers complete protection against hacks and scams that result in the loss of digital currencies. These can include:
•Crime Liability: KASE offers both crime cold storage and crime hot storage solutions. Protect yourself or your business against cybersecurity intrusion. In cases of loss, theft or hacking of cryptocurrency assets and valuable data, as well as natural disasters and inside collusion, know you are covered.
•Cyber Liability: This policy provides coverage in instances of coin/token holder’s data or customer data is lost because of negligence, hacking, malware, data or cyber breach, etc. It can help protect businesses from reputation harm should any of these instances occur.
•Directors & Officers’ Legal Liabilities: Data breaches or cybercrime incidents can have serious consequences for the directors and officers of the afflicted entity, including regulatory investigations, shareholder lawsuits and even criminal investigations. Directors and officers insurance is intended to supply coverage for these kinds of liabilities.
•Product Negligence, Errors and Omissions: This kind of professional liability insurance provides protection to companies and their workers against claims of negligence or inadequate work. This policy covers any liabilities from customers who have lost their cryptocurrency assets.
KASE Insurance has the ability to acquire coverage for any entities that are domiciled in Canada. This even includes those with initial coin offerings (ICOs) or who participate in the securitization of these assets. Our clients fall into various cryptocurrency sectors, each with their own risks. Therefore, they require difference coverages that intrinsically understand the needs of this everchanging sector. These sectors include:
•Financial services (platforms)
Anyone who invests in cryptocurrencies, holds a substantial amount, or runs a business that processes them, can benefit from our cryptocurrency insurance in Toronto. This insurance is also available to companies that transact in cryptocurrencies, including e-commerce websites that accept them as a payment method and store the resulting income, as well as exchanges that trade with large amounts of them on a daily basis.
If you are thinking about investing in these currencies but have always been concerned about the risks associated with them, then cryptocurrency insurance can help to ease you into a secure investment.
KASE Insurance is one of the top cryptocurrency insurance providers in Toronto, with years of experience, a highly specialized team, and a customer-centric approach that sets us apart from other insurance firms.
We have been recognized as a leader in customer service and innovation, and are always looking for ways to improve our service. We are one of the few companies in Canada that provides cryptocurrency insurance, and it is this innovation and willingness to move with the times that has taken the KASE Insurance name to the very top.
If you are in need of cryptocurrency insurance, contact us today.
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