SALT, a crypto-collateralized online lending platform, has expanded its insurance coverage on digital assets. As of February, SALT’s crime insurance policy covers 100% of collateral assets held in their “deep” cold storage.
SALT now has two types of insurance policies.
First, there is the Cyber Liability Insurance that protects SALT against attacks.
Second, there is the Crime Insurance which protects users assets held in cold storage.
SALT adds that their insurance is superior to some other companies that “rely on a third-party custodian to store their customers’ assets.”
“If the custodian has an insurance policy that extends to its clients, it’s important to understand the policy and what it means for your assets. Rather than offering a specific coverage limit to each client, the pool of clients shares a coverage limit. This means that while the policyholder is insured, your personal assets might not be.”
SALT points out that a coverage limit shared by multiple clients of the policyholder likely does not equate to the total value of assets held on the platform to which the coverage limit applies. So if the coverage is for $100 million and you are holding twice that in assets you may be on the short end of a hack.
Bitgo recently took some heat regarding the details of their insurance as they cover a loss of up to $100 million which may be short of what they hold.
“No matter where you choose to keep your crypto assets, when it comes to insurance coverage, be sure to ask: Is the company holding my assets also the holder of the insurance policy? Does the coverage limit apply to each client or all clients collectively? What is the total value of assets held on the platform compared to the insurance coverage limit?”
SALT points out that digital assets on their platform are 100% covered.
As there have been multiple, huge crypto hacks, SALT says trust is at a premium and insurance is hard to come by. Their focus on due diligence, compliance and safe storage practices have facilitated the underwriting process.
“As more insurance companies become interested in working with crypto companies, we can work together to build greater trust within the industry by educating people on cryptocurrency, cold storage, and custody. In the meantime, while we can’t change how other companies insure or store their customers’ assets, we can assure you that we’re doing everything we can to keep your assets safe when they’re in our hands.”
Now, this is where we’ve seen some confusion in the market around crypto insurance policies regarding what (and who) they cover. It’s important to understand that Cyber Liability Insurance does not directly insure the customers’ digital assets from cyberattacks and other threats. Rather, this type of policy protects a company entity from cyber events (attacks, hacks, or extortion threats), technology or professional error, and multimedia liability — it is an important component of a complete insurance program, but does not ultimately insure customer assets directly.
So why should you care about this additional policy? Because Cyber Liability protects client information, company information, and the SALT technology you use to interact with your assets.
Bottom line: When you entrust SALT with your crypto assets, we maintain tight control of the wallet lifecycle and all disbursement of funds. This autonomy combined with these two new, more expansive insurance policies enables us to offer you a complete insurance program and say with confidence that we can keep your assets safe.
Crypto is complex, but with quality crypto-specific insurance coverage and a comprehensive safekeeping program that provides professional grade security, we’ve got you 100% covered, even for the worst-case scenarios.
** We will provide our customers with a certificate of insurance upon request.
*SALT is committed to the safety of your assets and reserves the right to update coverage, increase coverage limits, and/or work with additional insurers, insurance programs, and safety programs and/or protocols than those detailed above, current as of March 19, 2019. For additional details, terms, conditions, and references please see www.SaltLending.com.