Lloyd’s of London licensed broker launches crypto insurance product
A Lloyd’s licensed insurance broker has launched a dedicated crypto product to shore up legal protections for digital asset firms.
Superscript today announced the launch of Daylight, a product to insure crypto businesses against ransomware attacks, unintentional copyright infringement and business interruption. The London brokerage launched the new offering after identifying a gap in the insurance market which offers scarce coverage to crypto firms.
“We knew that demand was far outstripping supply. Some clients had been trying for years to find cover and they weren’t able to,” said Ben Davis, the digital asset lead for Superscript. “This led us to build Daylight to make it easier for them.”
According to Davis crypto businesses have struggled to access insurance products in part because of a lack of understanding about digital asset firms in the insurance industry.
“Largely, it comes down to a knowledge gap. Insurers are naturally risk-averse, so getting underwriting capacity for technology they don’t understand and perceive as risky is difficult,” he said.
Superscript has built a dedicated team of crypto brokers to help address this knowledge gap and “reap the rewards” of offering insurance to Web3 firms. Crypto firms attracted almost $32bn of venture capital last year according to Pitchbook data creating a lucrative market opportunity for insurance brokers.
Superscript plans to expand its offering to cover crypto custody platforms and miners against a range of threats later this year.
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