- June 5, 2023
- Posted by: [email protected]
- Category:
Evertas, a digital asset insurer, recently issued an important statement regarding its coverage limits and increased offers. The company will now provide coverage for custodial crypto assets of up to $420 million per policy for custodial crypto assets, effectively tripling the previous risk transfer options available to blockchain-focused projects. Additionally, Evertas is introducing coverage for mining operations, offering a maximum limit of $200 million per policy. These coverage limits are reported to be the highest available in the industry.
This development comes merely six months after Evertas successfully raised $14 million in a Series A funding round, with Polychain Capital leading the investment. In total, the company has secured $19.8 million in external funding, including its initial seed funding of $5.8 million. Evertas, headquartered in Chicago, is among a small group of insurers specializing in cryptocurrency and digital assets. Notably, it is the only company with official cover holder status granted by Lloyd’s of London.
While some cryptocurrency exchanges claim to provide insurance coverage for digital funds in the event of theft, there are various scenarios where account holders may lose access to their assets that cannot be traced through account or on-chain activity. This limitation has prompted customers to seek additional coverage options from multiple insurers to address potential gaps in their protection.
Evertas aims to address this issue by offering comprehensive coverage with its increased policy limits. The company’s policies now offer greater scalability and speed, enabling customers to obtain a full, high-limit underwriting solution from a single source. This move is intended to alleviate the inconvenience faced by consumers who previously had to navigate a fragmented insurance market.
It is important to note that bitcoin insurance is a very new industry when compared to more traditional categories such as home and life insurance. Currently, less than 1% of all cryptocurrency assets are insured through conventional underwriting policies. Given the projected significant growth of the global cryptocurrency market by 2030, this represents a considerable level of exposure. Evertas’ expanded coverage options demonstrate the company’s commitment to addressing this gap and providing tailored insurance solutions to meet the evolving needs of the cryptocurrency industry.