Insurance FAQs

Who and what is covered by this insurance policy?

This policy includes several key elements:

• It only applies to cases where BitGo Trust Company holds all the private keys to a given wallet

• It generally covers cases where keys are stolen, lost, or misused by BitGo

What isn’t covered by insurance?

The policy does not cover cases where the client or a third party holds some of the keys themselves (eg, self-custody hot wallets), since BitGo would not be solely responsible for protecting the keys.

How does this compare to the insurance offered by other custodians?

Generally speaking, BitGo offers a considerably higher coverage amount than other digital asset custodians.

How would an insurance payout be distributed in the event of a theft or direct loss of property?

In the event of an incident, proceeds would be paid out in accordance with applicable law and/or BitGo Trust Company’s fiduciary obligations to its clients.

How does BitGo prevent issues of theft, loss, or misuse in the first place?

BitGo’s security architecture has been engineered to both prevent breaches and prevent any breach from affecting multiple wallets. Those measures include:

• Maintaining segregated wallets for each client

• Securing each wallet with our Multi-Sig or TSS technology, which prevents single points of failure

• Keeping keys secured offline in purpose-built, Class III bank vaults

• Requiring multiple parties with segregated duties in order to execute transactions

• Signing transactions only through a rigorous and carefully scrutinized process that may take up to 24 hours

• Maintaining policies and procedures for changing personnel, restoring systems in the event of local failures, and logging and auditing activity.

How can I purchase additional insurance?

BitGo collaborates with insurance broker Woodruff Sawyer to help interested clients purchase their own additional insurance. Moreover, self-custody hot wallet clients may be able to purchase key recovery service (KRS) insurance, as well as additional insurance, through third-party company Coincover.

What are some of the questions I should ask other custodians when evaluating their digital asset insurance coverage?

• What is the aggregate limit of the custodian’s policy?

• Are client wallets segregated?

• Who are the insurers underwriting the policy, and what are their AM Best ratings? (AM Best is a major credit rating agency, which focuses on the insurance space).

• Does the policy cover theft of digital assets by outside parties?

• Does the policy cover insider theft? Insider theft by executives?

• Does the policy cover loss/destruction of private keys caused by natural disasters? (Fire, lightning, smoke, windstorm, hail, riot, civil commotion, aircraft, vehicles, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, falling objects, weight of snow, ice or sleet; water damage, flood, and earthquake).

• Is the coverage for custody wallets, self-custody hot wallets, both, or neither?

• What legal entities are covered by the insurance policy? Does this match the legal entity for which the customer has entered into a service agreement?

• Does the custodian or exchange allow you to purchase additional insurance of your own?

• Does the custodian’s policy employ “coinsurance” or “self-insurance” in addition to the per loss deductible? What is the amount of the deductible? What is the percentage of co-insurance?