Digital Asset Insurance Market
The theft of $6.3 billion from Binance has brought focus to the insurance arrangements protecting cryptocurrency exchanges against cyberattacks and theft. Underwriting for digital asset risks remains a niche segment handled largely by specialist insurers in the Lloyd's market and Bermuda, with the global crypto insurance market projected to grow significantly from $9.37 billion in 2025.
Coverage Limits and Exclusions
Digital asset policies can encompass crime insurance, cyber liability, errors and omissions, directors and officers liability, and technology liability. However, standard crime and cyber policies often exclude cryptocurrency losses or apply strict conditions. When losses exceed insured limits or are restricted by policy exclusions—such as value fluctuations or unsecured key management—exchanges must rely on corporate capital or emergency reserves, such as Binance's Secure Asset Fund for Users.