Evertas, an insurance platform focused on the cryptocurrency space, has been granted approval to call itself a Lloyd’s of London coverholder.
Something of a coup for a crypto firm, coverholders are specialty insurance providers authorized by Lloyd’s, the 336-year-old general insurance market, to write and service policies covering risk in various geographies or niche sectors.
It makes Evertas the first coverholder at Lloyd’s to specifically cover digital wallet products and write policies on behalf of Lloyd’s syndicate member Arch Insurance, which also served as sponsor of the Evertas coverholder application.
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The need for insurance cover across the cryptocurrency industry far outweighs capacity in the market. While there’s a growing appetite and expertise among certain Lloyd’s members to explore cryptocurrency-related risks, the overarching Society and Council of Lloyd’s has been skittish when it comes to public announcements about crypto cover being provided in the market.
“Our approval of Evertas’ coverholder application is an example of collaboration between Lloyd’s insurer Arch and their new distribution partner on an innovative solution aimed at facilitating the growth of an industry sector previously hindered by a lack of risk transfer options,” said Hank Watkins, president of Lloyd’s in the Americas, in a statement.
Evertas CEO J. Gdanski said his team has worked long and hard to define a policy framework for the risks related to typical classifications such as “hot,” “warm” and “cold storage” of digital assets.
“We’ve come up with the most comprehensive policy form and product that’s out there, where it’s very clear what is and is not being covered, resolving a lot of the legal ambiguities and technical inaccuracies,” said Gdanski in an interview.
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The Evertas insurance product goes live next week and the target market includes traditional funds, crypto funds, family offices and high-net-worth individuals, Gdanski said.
“We are the first full product to have underwriting that is scalable and appropriate for different market participants,” Gdanski said. “So if you have a crypto risk, if you’re looking for insurance, you should have your broker contact us.”