Specialist insurance firm Beazley has unveiled new Directors’ & Officers’ liability (D&O) insurance product, named CryptoGuard, for crypto companies.
Developed following four years of research into the sector, the CryptoGuard comprises access to an integrated team of underwriters and claims managers.
Said to be the first of its kind in the US and London markets, the cover will address the risks faced by crypto companies operating through all stages of their life cycle including from start-ups, high growth businesses and established organisations.
The D&O policy, which is intended to protect senior executives of crypto companies from boardroom risks, offers coverage of up to $10m for public companies and up to $5m for private companies.
D&O Specialty Risks underwriter Luisa Celentano said: “The crypto market is growing rapidly, and becoming increasingly mainstream. Crypto firms face a myriad of risks from extreme volatility to a lack of regulation, and they also have to contend with different rules in different jurisdictions. One misstep can impact their financial results and business reputations, leaving senior executives in the firing line.”
Celentano noted there exists limited number of specialist insurance solutions for crypto businesses.
“CryptoGuard is a step forward in providing quality, specialist D&O protection that addresses the D&O liability risks crypto and blockchain firms and their executives face,” she added.
The policy covers for claims against directors and officers, who are not insured by the organisation.