Custody insurance is a specialty insurance product for digital assets stored in “cold” or, in certain instances, “warm” storage.

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.

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.

Cold storage is the offline storage of a device that stores a private key (or part thereof).

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.

This will depend on your solution. To get started see our streamlined questionnaire.

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.