Arch Insurance (UK) has launched a new insurance product for digital assets, in collaboration with insurance broker Marsh.
Dubbed Blue Vault, the new proposition offers cover for the storage of digital asset private keys that are held in traditional vault facilities.
The new offering is available globally and supported by syndicates Arch 2012 and Canopius 4444, along with other Lloyd’s of London syndicates.
Up to $150m worth of coverage can be availed under the Blue Vault. The insurance plan covers digital asset loss owing to theft and the destruction of private keys.
Arch vice president of fine art and specie James Croome said: “When it comes to the critical risk around the generation and storage of digital assets, it is not just the way sensitive material is stored, but a complete and detailed understanding of the entire life cycle of the private keys.
“A breach at any stage could cause a financial loss for our clients, so it is the secure generation, transfer and storage of knowledge, not simply the possession of data that is our paramount underwriting consideration. The importance of this distinction cannot be overestimated and our insurance policy wording was very deliberately constructed to manage this risk.”
International law firm Norton Rose Fulbright has been hired to provide legal and technical consulting support for the new service.