Ever wondered whether your virtual assets can get a cover from life & property insurance firms?
As the global market for digital currencies and virtual assets keeps growing rapidly, so also are the risks of losing your digital fortunes are increasing fiercely. Looking at the digital currency market, and with the anonymity policy guiding the industry – it is harder to recover any loss that may occur due to theft, liabilities and the unstable market trends.
These and other serious security threats plaguing the digital currency market has made people raise a very important question “Can One Get an Insurance Cover for Cryptocurrency” a commercial exchange medium that is fast becoming a globally accepted system of doing business.
In Canada for example, there are insurance agencies that have tailored policies that protects those with digital currencies who want to insure it against cyber criminals who may want to mine it through the back door while also protecting the individual from experiencing complete loss due to fluctuating currency market.
Before now, as a cryptocurrency trader or owner, you were basically operating at your own risk and little or nothing could be done to protect you from any form of loss that may occur – Which is why a lot of people eventually got crippled out of the digital currency market. But with such policies by insurance companies, you are indeed covered.
Cryptocurrency insurance is so important especially now that demands are higher, with experts projecting that in a few years from now, it is expected that the industry could grow from its current collective 300 billion dollar cap to atleast 5 trillion dollars.
With this in mind, more risks would definitely rise and the need to protect your digital currency (cryptocurrency) would be necessary. Whether you choose bitcoin, ethereum, dogecoin or any other popular or growing platform – It’ll only be safe to give yourself the peace of mind you deserve by adopting an insurance policy that’ll protect you from any form of setback in the future.
Canada happens to be one country that has quickly adopted the digital currency or cryptocurrency system and it is only relieving to know that there are agencies in place that offer insurance plan for individuals or corporatee entities who are playing in this crypto market. If you live in Toronto for example, a life insurance company like K.A.S.E could be worth checking out.
Why should you Insure your Digital Currency?
You may think, since it is built on a powerful technology known as blockchain, therefore it is impregnable – However, that is far from the truth, unlike physical vaults, these virtual vaults are being constantly targeted or hit by different malwares developed by cyber criminals. This therefore poses more threat for anyone who might have put away thousands or millions of dollars away as investment in the crypto market, with the hope that they’re safe.
There is a saying “Hope for the best but prepare for the worst.” This quote helps us to understand that uncertainties do happen and there is no amount of hope you’ll have that can replace adequate preparation.
Your hope should be reliant on the backup plan that you’ve already implemented. And that backup plan should be your subscription to an insurance policy tailored for your business type, and in this case, cryto insurance.
What are some areas this insurance policy cover?
Unlike the traditional insurance policy, the digital or e-currency market is still very young and bound to get more policy reviews in the coming years – however, it is reassuring to know that these insurance companies are really doing their best to offer favorable policies that’ll attract potential clients despite the risks involved.
Below are some (in no particular order) of the areas these insurance companies can assist you as it relates to your e-currency.
1. Cyber Vulnerability: The policy provides a cover in the case where a coin/token is lost as a result of loss of login credentials, cyber security breaches, etc. It protects you, should there be a reoccurring of such incident.
2. Intrusion or Hacking: This policy covers any aspect of cyber attacks on your e-currency. You can also be rest assured that even if any loss should occur as a result of disaster, this policy will definitely cover you.
3. Errors & Negligence: Lastly but not least, this policy helps protect the individual or firm from any loss that may occur due to system errors, claims of negligence, and any liabilities that could happen in such cases.
Who can benefit from these crypto or e-currency policies?
The floor is open to many players in the field, ranging from:-
> Those into coin mining
> Coin exchange platforms
> Coin wallet platforms
> Infrastructural facilities, etc.
It is indeed a very robust policy to tap into, and I believe that it presents the opportunity for more people to see the potential credibility of the global e-currency economy market.
Before now, many people have expressed their skepticism about the uncertainty of the crypto market and industry, but with such backup plans being introduced – It becomes way easier to weigh one’s virtual assets and be able to make guided decisions on investing even more.
Published November 18th, 2021