Via Silicon Angle : To date, the Bitcoin industry has received over $1 billion in venture capital, and startups are trying their hand at developing services for the community or building on top of the distributed ledger technology (blockchain) that runs it. Last year saw a boom for Bitcoin startups, and like any growing ecosystem, some succeeded and some failed.
While the Bitcoin protocol itself provides a great deal of security for transactions, holding bitcoins can be a risky endeavor, especially if a startup happens to keep a hot wallet with a lot of cryptocurrency in it. These wallets are fat targets for hackers, fraudsters and would-be thieves.
Just like any other asset, bitcoins can be secured and insured. Since 2014 different quarters of the Bitcoin ecosystem have been working on solutions available to startups that can provide risk management in terms of securing bitcoins on hand or insuring bitcoins that may be lost due to digital highway robbery.
Below is a small list of resources that a Bitcoin startup should be aware of for getting secure or insured.
Insurance companies with bitcoin coverage
Bitcoin Financial Group
Bitcoin Financial Group, LLC is the first in the industry to offer insurance and financial services to handle needs of companies involved in the bitcoin space. It offers a service dedicated to bitcoin theft called BitSecure. It is a bespoke insurance product which means it is customized according to the needs of the client.
BitSecure protects both the corporate policyholder as well as its customers from any act, error, or omission of an Insured (including errors in technology, processes, and employees) which result in a theft of Insured Bitcoins (or their related private keys). The proprietary bitcoin theft insurance policy applies to both hacking incidents as well as employee theft, and you can choose to insure both hot wallets and cold storage. In case of loss, be it via hacking or employee theft, the policy will reimburse the full value of the stolen insured bitcoins and allow the corporate policyholder to work directly with it customers in the management and resolution of such incidents.
BitSecure is fairly new as it was just announced last February.
Great American Insurance Group
Great American Insurance Group is another institution that offers bitcoin insurance via its Fidelity/Crime Division. Its policy covers Employee Dishonesty, Money & Securities, Forgery and Computer Fraud, as well as a number of additional enhancements available by endorsement. Insurance coverage for bitcoin can be granted by endorsement to existing crime policy for mercantile and governmental customers who accept bitcoin.
The policy also provides tailor coverage to fit the needs of insureds. The addition of bitcoin coverage to the Fidelity/Crime Division was announced back in June 2014.
SILICON ANGLE | Five ways to secure and insure your Bitcoin startup