Crime & Custody Insurance
Crime & custody insurance covers the theft or loss of digital assets — hot and cold wallet compromise, private-key theft, employee dishonesty, and the custody (specie) exposure of holding crypto for yourself or customers.
Crime & Custody for Digital Assets
For exchanges, custodians, and any company holding crypto, the theft of digital assets is an existential risk. Crime & custody insurance — sometimes called specie coverage for cold-storage assets — responds to the theft or loss of crypto from hot wallets, cold storage, and private-key compromise, as well as employee theft and internal fraud.
The market typically distinguishes hot wallet coverage (assets connected to the internet for active trading — higher risk, more limited limits) from cold storage / specie coverage (offline assets — the bulk of insurable custody capacity). Underwriting is rigorous: carriers examine your key-management practices, multi-sig and HSM usage, governance, segregation of duties, and proof-of-reserves before offering terms.
Limits vs. Assets Under Custody
A critical reality: available custody limits are usually far smaller than total assets under custody. The global insurance market simply doesn't have the capacity to fully cover the largest custodians, so coverage is layered across multiple specialty syndicates and sized to the most exposed tranche. We help you structure crime/custody limits across hot and cold storage, coordinate them with cyber and smart-contract coverage, and present your security controls to underwriters in the best light.
What's Covered
Frequently Asked Questions
Usually not the full amount — global market capacity for digital-asset custody is limited, so limits are typically smaller than total assets under custody and layered across syndicates. We help size and structure coverage across hot and cold storage to protect the most exposed tranches.
Your key-management and security controls: multi-sig, hardware security modules (HSMs), cold-storage practices, segregation of duties, governance, and proof of reserves. Strong, well-documented controls are what make crime/custody coverage available and affordable.