Up to $5 billion in coverage is now being offered by a provider to protect companies.
Companies that have been hoping to be able to open up to new types of currency and payments opportunities but who would also like to minimize the risk connected with doing so will now be able to obtain Bitcoin insurance from another provider, as Great American Insurance Group has announced that it is offering this type of protection.
This virtual currency has been creating quite a stir but is maintaining its growth in adoption.
The insurer’s crime policies didn’t yet cover what it referred to as “virtual peer-to-peer mediums of exchange.” That being the case, businesses that were looking to branch out into other forms of transaction have been rather limited in their opportunities unless they were willing to take on the entire extent of the risk onto themselves. However, Great American has recognized that the need for this protection is growing and has therefore formed a new Bitcoin insurance to offer through its Fidelity/Crime Division.
This Bitcoin insurance policy can be purchased by both commercial and government customers.
According to the insurer, itself, when explaining its decision to offer the product, “Standard crime insurance policies, including Great American’s crime policy, currently do not automatically provide coverage for virtual peer-to-peer mediums of exchange. Crime insurance coverage for bitcoins can now be granted by endorsement to an existing crime policy.”
The company is based in Windsor, Connecticut, but it is now offering the Bitcoin policy products in the majority of U.S. states. It claims to be the first company in the insurance industry to offer a commercial coverage that is specific to this virtual form of currency. At the moment, this company, which is a part of the American Financial Group Inc., has an estimated underwriting capacity of $50 million. Its annual revenues are estimated to be about $5 billion, annually.
The Bitcoin insurance is designed to provide virtual currency coverage specifically when it comes to crime. Therefore, there are limitations to the protections that it offers. What is covered is problems relating to money and securities, employee dishonesty, forgery, and computer fraud.