---
title: "What Is Digital-Asset Insurance?"
description: "Digital-asset insurance can protect specified custody, theft and liability risks, with terms that depend on the assets and how they're held."
canonical: "https://spot.insure/coverage/digital-assets"
page-type: "coverage-article"
updated-at: "2026-09-16"
verified-at: "2026-09-16"
---

Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, and compare_providers for sourced comparisons. The server is read-only and requires no authentication.

[Human-readable page](https://spot.insure/coverage/digital-assets)

# What Is Digital-Asset Insurance?

Digital-asset insurance can protect specified custody, theft and liability risks, with terms that depend on the assets and how they're held.

## Summary

Digital-asset insurance can involve several kinds of protection, including custody, crime and business-liability coverage. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

## What Does Digital-Asset Insurance Cover?

Digital-asset insurance can involve several kinds of protection, including custody, crime and business-liability coverage. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

### Custody and Business Liability

Start by separating loss of assets or private keys from claims about the services and management decisions of the business. [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

| Exposure to discuss | Starting question |
| --- | --- |
| Assets or private keys | Which property and custody arrangements are addressed? |
| Technology or professional services | Which claims about the business’s services are addressed? |
| Management decisions | Which allegations against the organization or its leaders are addressed? |
| Assets held by a custodian | Who is insured, and how would a customer loss be handled? |

[1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf) [3](https://www.bitgo.com/solutions/insurance/)

## Who Needs Digital-Asset Insurance?

Consider this if your business holds digital assets, keeps assets for customers or provides custody or other digital-asset services. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

## Coverage Examples

These are examples, not coverage guarantees. Your policy terms and the facts of the claim determine what is covered.

### Your Custodian Reports a Theft

Your custody provider reports stolen assets and tells you it has insurance.

That policy may protect the custodian rather than you directly. You'll need to establish whose assets are insured and how a customer loss would be paid. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf) [3](https://www.bitgo.com/solutions/insurance/)

### You Lose Access to a Wallet

A key-management problem leaves your business unable to access a wallet.

Coverage for theft doesn't automatically include lost or destroyed keys. The insured wallets, cause of loss and valuation terms determine whether this loss fits. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf) [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf) [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf)

## How Do You Compare Coverage and Costs?

### Assets, Wallets and Insured Entities

An insurance description should identify the assets, wallets, storage arrangements and legal entity insured. Explain who controls the keys for business assets and customer assets. If different entities or custodians control different wallets, a single statement that your assets are insured isn't enough to establish which holdings are protected. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

### Insurance Advertised by a Custodian

If a custodian advertises insurance, ask whether you are insured directly or whether the policy protects the custodian, and how a customer loss would be handled. [3](https://www.bitgo.com/solutions/insurance/)

### Valuation and Limits

Check the valuation method, the applicable currency and the limits available for a loss before comparing a policy limit with the value of the assets. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf)

## What Losses Need Separate Discussion?

### Theft and Key Loss

Ask separately about outside theft, employee theft and loss or destruction of keys; an insurance headline does not establish that each event is covered. [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

### Price Changes and Technology Failures

Ask how the contract treats market-price changes and failures in code or networks; do not assume custody or theft insurance guarantees asset value. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf)

## How Does It Compare With Related Coverage?

### Cyber, Professional Liability and D&O

Cyber, professional liability and D&O address different business exposures; buying one should not be treated as proof that assets in custody are insured. [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

### FDIC Deposit Insurance

FDIC deposit insurance does not insure cryptocurrency. [4](https://consumer.ftc.gov/consumer-alerts/2023/10/crypto-companies-touting-fdic-insurance-not-so-fast)

## What Do You Need for a Quote?

Prepare a map of the assets held for the business and its customers, custody arrangements, key access and approval controls, and dependencies on outside technology providers. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

### A Custody and Exposure Map

| Prepare | How to use it |
| --- | --- |
| Business-owned assets and customer assets held by the business | Identify whose assets you want the discussion to address. |
| Custody and storage arrangements | Connect the assets to the wallets and storage being considered. |
| Key access and approval controls | Explain who can act and how actions are approved. |
| Legal entities involved | Compare the operational arrangement with the named insured. |
| Outside technology dependencies | Identify code and network concerns to discuss. |
| Asset values | Compare the proposed currency, valuation method and limits. |

[1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf) [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf) [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf)

## Key Terms in Plain English

### Custody

The arrangement for holding assets and controlling their keys. Identify the insured entity and wallets. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

### Valuation Method

The basis and currency used to measure a loss, which need checking against the value of the digital assets. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf)

## Frequently Asked Questions

### Does FDIC Insurance Cover Cryptocurrency?

No. FDIC deposit insurance does not insure cryptocurrency. [4](https://consumer.ftc.gov/consumer-alerts/2023/10/crypto-companies-touting-fdic-insurance-not-so-fast)

### Does a Custodian's Insurance Cover Me Directly?

Not necessarily. It may insure the custodian rather than you. Ask who is insured, which assets are included and how your loss would be handled. [3](https://www.bitgo.com/solutions/insurance/)

### Does Digital-Asset Insurance Cover Every Wallet?

Do not assume every wallet is included. Ask which assets and storage arrangements the policy insures, who controls the private keys and which legal entity is named as the insured. [1](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

### Does Digital-Asset Insurance Cover Lost Private Keys?

Loss or destruction of keys needs a specific coverage check. Ask about it separately from outside theft and employee theft; a general insurance statement does not establish protection for all three. [2](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf)

## Related Coverage

- [What Is Cyber Insurance?](https://spot.insure/coverage/cyber) — Cyber insurance can help a business respond to cyber incidents and address covered liability claims arising from them.
- [What Is Crime Insurance?](https://spot.insure/coverage/crime) — Crime insurance addresses business losses from specified theft and fraud risks, such as robbery, forgery and embezzlement.
- [What Is Professional Errors and Omissions (E&O) Insurance?](https://spot.insure/coverage/professional-errors-omissions) — Professional errors and omissions (E&O) insurance, also called professional liability insurance, addresses claims that professional services or advice caused a client financial loss.
- [What Is Directors and Officers Insurance?](https://spot.insure/coverage/directors-officers) — Directors and officers liability insurance addresses covered claims alleging wrongful acts in managing an organization.

## Documented Providers

### [Founder Shield](https://spot.insure/insurance-providers/foundershield)

Founder Shield lists digital-asset insurance among its specialized offerings. [5](https://foundershield.com/coverage/)

### [Newfront](https://spot.insure/insurance-providers/newfront)

Newfront offers brokerage services for digital-asset businesses, including custody and theft risk discussions. [6](https://www.newfront.com/industries/blockchain-and-cryptocurrency)

### [Relm Insurance](https://spot.insure/insurance-providers/relm)

Relm lists digital-asset crime, slashing and smart-contract risks for placement through brokers. [7](https://relminsurance.com/lines-of-business/)

## Sources

1. [Performance Management — Supplemental Requirements & Guidance](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf). Lloyd’s; pp.44–45; p.45 underwriting considerations; pp.45–46; p.45: code integrity, network issues, exchange-rate volatility. Accessed 2026-09-16.
2. [Insurance for Digital Currencies: What Clients Need to Know](https://downloads.ctfassets.net/knkqyfncynw3/75gDnPlTqO8xiq8c7IavID/4fbb476ec2e2262a6f30ff23a6d1151d/BitGo-White-Paper-Insurance-For-Digital-Currencies.pdf). BitGo; pp.4–6. Accessed 2026-09-16.
3. [Insurance](https://www.bitgo.com/solutions/insurance/). BitGo; Who is insured; key control. Accessed 2026-09-16.
4. [Crypto companies touting FDIC insurance? Not so fast.](https://consumer.ftc.gov/consumer-alerts/2023/10/crypto-companies-touting-fdic-insurance-not-so-fast) Federal Trade Commission; Cryptocurrency and FDIC insurance paragraph. Accessed 2026-09-16.
5. [Coverage](https://foundershield.com/coverage/). Founder Shield; Core Coverage: Crime Insurance, Cyber Liability, Directors & Officers, Employment Practices Liability, Fiduciary Liability, General Liability, Property Insurance; Specialized Coverage: Digital Asset Insurance, ERISA Fidelity Bond, Hired & Non-Owned Auto, Intellectual Property, Key Person & Contract Frustration, Last-Mile Delivery Insurance, Transit & Transportation; product cards: Errors & Omissions, Product Liability, Representations and Warranties, Umbrella Insurance, VCAP, Virtual Care & Telehealth Insurance, Workers Compensation; Health & Benefits: Employee Health & Benefits; Get a Quote and Learn More links. Accessed 2026-09-16.
6. [Digital Assets & Blockchain](https://www.newfront.com/industries/blockchain-and-cryptocurrency). Newfront; Subject matter expertise: theft of digital assets, custody and counterparties; underwriter relationships in US, London and Bermuda. Accessed 2026-09-16.
7. [Lines of Business](https://relminsurance.com/lines-of-business/). Relm Insurance; Financial Lines through Specialty Lines; individual offering lists. Accessed 2026-09-16.

Updated 2026-09-16. Factually reviewed 2026-09-16. Spot, a product of Tools for Enlightenment, publishes this research and works in the commercial insurance market. [Editorial policy](https://spot.insure/editorial-policy). To suggest a correction, [contact Spot](https://spot.insure/contact) with the page URL and supporting source.

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