Does Cyber Insurance Cover Cryptocurrency Theft?
Sometimes, but do not assume a policy covers stolen cryptocurrency holdings.
A policy may cover bitcoin used for a covered extortion payment, while wallet theft, exchange failure, or lost keys may be treated differently. For example, Chubb says its extortion expenses can include bitcoin and other cryptocurrencies, which concerns a covered extortion response under that product. That statement does not establish coverage for a wallet compromise, exchange failure, private-key loss, or theft of investment assets.
Ask whether the quote covers digital assets as property, money, securities, or only as an extortion payment. Review custody and wallet definitions, crime and computer-fraud endorsements, exclusions for voluntary transfers or market loss, territorial limits, and any sublimit. Check whether the insured entity owns the assets and whether third-party custodian failure is included. Obtain the relevant endorsement wording rather than relying on a product summary.
