What Digital Asset Business Insurance Requirements Apply in Delaware?

Delaware’s Virtual Currency Business Act applies to defined activity conducted on behalf of another person and excludes specified closed-loop, affinity, game, and other activity. It also requires one-to-one entitlement for each type of virtual currency received and treats the corresponding customer currency as belonging to the customer rather than the licensee. During the transition for existing money-transmitter licensees, confirm which regime applies before arranging protection.

What Is Digital Asset Insurance?

Digital-asset coverage may address custody, theft and business-liability risks, but a custodian’s policy may protect the custodian rather than you. If you hold or safeguard assets, verify the insured entity, wallets, key-loss protection and valuation. Read the national Digital assets guide.

Delaware Digital Asset Insurance Requirements

Requirement	Details
Test covered activity and exclusions	Delaware’s Act regulates a person engaging in specified virtual-currency business on behalf of another person, subject to enumerated exclusions and licensing exemptions; do not apply it automatically to every token issuer, software vendor, or own-account trader. ¹
Reconcile customer entitlements token by token	A licensee must maintain at least a 1:1 entitlement for each type of virtual currency owed to customers. Currency held for a customer is the customer’s property, not the licensee’s property or available for the licensee’s creditors; a shortfall is shared proportionately under the statute. ¹
Confirm the transition date for an existing licensee	An existing money-transmitter licensee is exempt from the Act’s new or changed provisions until it renews its license or July 7, 2027, whichever occurs later. ²

What Should You Watch for With Digital Asset Insurance in Delaware?

A customer property rule is not full recovery insurance
The statute’s 1:1 entitlement and pro-rata shortfall rules affect customers’ legal rights, but they do not establish that all assets will be recovered or that an insurance policy covers a custodian shortfall. Ask for reconciliations by token, custody statements, wallet control, and the exact policy treatment of customer property. ¹
A legacy license may still be transitioning
For a business that already holds a Delaware money-transmitter license, the statutory transition may continue until renewal or July 7, 2027, whichever is later. Ask the operator which license and regime currently govern its Delaware customer service and name the responsible entity accurately on the submission. ^2,¹
Separate client assets from company property
For a custodian, ask whether crime coverage is first-party only or includes defined customer property and whether cyber, social engineering, E&O and directors’ liability respond to different allegations. Token-price declines and insolvency recovery are not implied policy benefits. ¹

Which Digital Asset Insurance Providers Have Delaware License Records?

No provider in our research has both a state license record and a listing for this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Who Regulates Insurance in Delaware?

Delaware Department of Insurance

The Delaware Department of Insurance licenses and regulates insurers and insurance producers, reviews regulated insurance activity, and handles complaints. Its consumer division can help you raise an insurance concern and its services page links to official license searches. ^4,^5,⁶

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint
Phone: (800) 282-8611

Surplus-Lines Tax and Stamping Office in Delaware

Reported tax rate. 3% of gross premium, less return premium, when Delaware is the home state ^7,⁸

When Delaware is the insured’s home state, its 3% surplus-lines premium tax applies to the entire premium of a multistate policy, less returned premiums and excluding federal and state taxes and examination fees. Ask the surplus-lines broker to confirm the home-state determination and tax calculation, and separately explain how exposures are allocated in the required reports; those allocations do not reduce the premium subject to Delaware’s tax.

What Should You Ask Before Buying Digital Asset Insurance in Delaware?

Which entity accepts custody for Delaware residents, and which virtual-currency types are owed to customers?
Can the custodian demonstrate 1:1 reconciliation by token and show how segregated or pooled wallets map to customer entitlements?
Is the Delaware business under the Virtual Currency Business Act or a transitional existing money-transmitter license, and when is renewal?
Do policy terms expressly define customers’ virtual currency as insured property, and how do limits apply to a pooled-wallet event?

Digital Asset Insurance in Delaware: Frequently Asked Questions

Does Delaware’s 1:1 entitlement rule guarantee full repayment after a custody shortfall?

No. The Act says customer-held currency is customer property and gives customers a proportionate interest if virtual currency is insufficient to meet liabilities. That allocation rule is not a promise of full recovery and says nothing by itself about insurance response. ¹

Does the Virtual Currency Business Act cover every Delaware crypto company?

No. The Act has a defined scope and express exclusions and exemptions. Determine whether the business performs a covered service on behalf of another person and whether the customer relationship falls within an exception. ¹

Sources for Digital Asset Insurance in Delaware

1
Delaware Code, Title 5, Chapter 23, Subchapter VIII, Virtual Currency Businesses. Delaware General Assembly; §§ 2333–2339; scope/exclusions, license, 1:1 entitlement, customer-property and proportionate-shortfall provisions. Accessed 2026-09-28.
2
Delaware Code, Title 5, Chapter 23, Subchapter VII, Money Transmission. Delaware General Assembly; § 2312 transition for existing money-transmitter licensees through license renewal or July 7, 2027, whichever later. Accessed 2026-09-28.
3
Senate Bill 18, 153rd General Assembly. Delaware General Assembly; Act effective July 6, 2026; Virtual Currency Business Act amendments. Accessed 2026-09-28.
4
Delaware Department of Insurance. Delaware Department of Insurance; Official Department homepage and regulatory resources. Accessed 2026-09-28.
5
Services. Delaware Department of Insurance; Department service directory links to the state insurance licensee search. Accessed 2026-09-28.
6
Consumer Services. Delaware Department of Insurance; Complaint filing and consumer assistance; publishes Consumer Services phone. Accessed 2026-09-28.
7
Surplus Lines Bulletin 22. Delaware Department of Insurance; Surplus Lines Bulletin 22 (October 2025; printed day is blank), reproducing 18 Del. C. § 1925: home-state tax treatment, all premium on multistate policy if Delaware is home state, 3% rate, and exclusion of federal/state taxes and examination fees from gross premium. Accessed 2026-09-28.
8
Delaware Code, Title 18, §§1923–1925. Delaware General Assembly; §1923(a)(1),(12) home-state verification and allocation records; §1924(b)(3)–(6) separate premium reporting; §1925(b)–(c) 3% tax, deductions/exclusions and full multistate premium when Delaware is home state. Accessed 2026-09-28.
9
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
10
Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
11
Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
12
About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
13
Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
14
Licenses & Disclosures. RiskCube; Property & Casualty Producer/Broker Licenses; February 11, 2026 version. Accessed 2026-09-16.
15
Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
16
Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.