Lockton’s Emerging Asset Protection (LEAP) team’s Digital Assets Custody (DAC) Insurance Facility is an industry-leading custody offering available exclusively to Lockton’s clients.
LEAP’s Digital Asset Custody Solution
Lockton’s Emerging Asset Protection (LEAP) team’s Digital Asset Custody (DAC) Insurance Facility provides efficient, flexible and robust insurance coverage.
The DAC provides our clients with:
Best-in-class insurance: We can help you build a best-in-class insurance program for digital assets under custody using market-leading policy wording and full access to London market capacity.
Ease and efficiency: The application and underwriting process for our DAC facility is streamlined and managed by our LEAP team, who is by your side through the entire process.
Flexibility: We offer the freedom to create a bespoke program, incorporating various limit and cost structures that work alongside existing and future risk management planning as you onboard the custody of additional digital assets.
The LEAP DAC facility provides indemnity in relation to the physical loss, damage or theft (due to acts by employees or third parties present at the storage location) of private keys stored in secure locations. These include keys that are part of a multiparty computation (MPC) solution or entirely “offline” in “cold” storage.
DAC provides Lockton clients with efficiency in product and competitive access to policy limits to meet their current and future needs as their businesses continue to grow.
Our LEAP Digital Asset Custody Insurance Contacts
LEAP Insurance FAQs
What is custody insurance?
Custody insurance is a specialty insurance product for digital assets stored in “cold” or, in certain instances, “warm” storage.
Who is custody insurance for?
Custody insurance is for any firms that hold and store digital assets either for their own interests or on behalf of others. This includes banks, custodians, exchanges and numerous others.
What does custody insurance cover?
Custody insurance covers:
The physical destruction of devices that store private keys (or parts of keys) by fire, flood, windstorm, earthquake and other natural perils;
Theft of devices, by employees or third parties at sites that store private keys (or parts of keys);
Theft or copying of private keys by employees or third parties while in transit from their place of custody.
What is “cold storage”?
Cold storage is the offline storage of a device that stores a private key (or part thereof).
Does LEAP’s Digital Asset Custody insurance offering cover assets stored via an MPC technology solution?
Multiparty computation has become a common risk management tool for digital asset custody. Depending how the MPC solution is implemented and utilised it can be covered within the LEAP Digital Asset Custody insurance program.
What information do I need to provide to be insured by the LEAP DAC facility?
If I already have custody insurance in place via another broker or program, can I access the LEAP DAC as well?
The LEAP DAC facility is exclusive to Lockton clients. However, as a broker, Lockton can review the coverage you currently have and either work with that existing program or look to expand the current coverage via our facility where appropriate.