A U.K. startup Superscript which has been Lloyd’s coverholder since early-2019 is now bringing a crypto-insurance product as Lloyd’s broker. The new insurance offering for digital asset firms, called “Daylight” begins with technology liability and cyber insurance.
With this, the client businesses will have access to a variety of covers and will be able to manage their risks, benefiting digital asset businesses. These businesses include tokenization platforms, miners, custodians, blockchain developers, and NFT platforms.
This new offering will serve as protection against everything from ransomware attacks to unintentional copyright infringement.
Superscript also plans to expand Daylight’s product suite later in 2022 to include directors and office, custodianship, and mining covers. The product “Daylight” is available either directly through Superscript or on a wholesale basis.
Considering the current circumstances, cryptocurrency and insurance have been uneasy partners, with a shortage of capacity in the market. On the other hand, many major crypto exchanges are preferring to self-insure, holding reserves of Bitcoin to cover their losses, typically in case of a hack of “hot” wallets, or those connected to the internet.
“Daylight”, a crypto-insurance offering will act as a gateway between the on-chain crypto community and the largely paper-based insurance market. Moreover, the insurance is perceived to set a new standard for crypto, digital asset, and DLT insurance, says Superscript digital assets lead Ben Davis.
Superscript also stated that the first crypto businesses to buy tech and cyber cover are Argent, CEX, and Chiliz.
Davis also mentioned that along with protecting the actual physical assets, there’s a whole other world of risk that also needs to be covered.
He further stated that if a platform goes down, or suffers privacy breaches, ransom attacks, breaches of contract, copyright, and IP infringement, all of which need to be covered by crypto companies.
Also read: OneDegree partners with HKbitEX to offer insurance for crypto
As of 2021, there are 350 brokers licensed to deal with Lloyd’s. Superscript says it’s the first Lloyd’s broker to offer a digital asset-focused product. Lloyds-approved coverholder status was also granted to Evertas earlier this year.
Reportedly, Lloyd’s policy does not promote individual products and therefore it did not provide a quote for Daylight, a Superscript representative informed via email.
Davis showed his excitement for this new offering by saying – “I would say the winds are changing a little bit for Lloyd’s in terms of digital asset risk.”
