The popularity of cryptocurrencies has increased over the years, leading to the establishment of a whole new industry.
The rise of the cryptocurrency and blockchain industry has brought about new companies that base their business operations on cryptocurrency. With the crypto market booming, the need for business cryptocurrency insurance increased. So, what are the best cryptocurrency insurance companies in the world?
Best Crypto Insurance Companies
Are you a cryptocurrency business owner looking to obtain the best crypto insurance for your company? Or are you an individual interested in cryptocurrency and you want the best crypto insurance company to insure your crypto wallet?
Here is a list of the best crypto insurance companies that you will surely want to check out:
- Nexus Mutual
- Saffron Finance
- Tidal Finance
- Bridge Mutual
1. Nexus Mutual
This is a decentralized insurance fund that operates on the Blockchain. It pools funds and shares all its insurance claims using smart contracts.
Smart contracts are a type of code that has the capacity to carry out financial functions on the blockchain. For example, after the verification of any insurance claim, it is the smart contract that will automatically send out the fund to the insured party from the insurance fund.
Nexus Mutual is owned by its members and any of its investors has the opportunity to vote on which smart contacts and crypto wallets they ensure proportional to the number of their Nexus tokens (NXM) in the fund.
Companies who are insured by Nexus mutual pay into the fund with NXM tokens. Nexus uses mathematical functions to calculate the number of claims they are capable of insuring so the fund doesn’t become over-leveraged.
Evertas is one of the best crypto insurance companies that are best suited for theft and loss. It is the first insurance company to solely underwrite insurance for blockchain and cryptocurrency users.
Evertas focuses on covering institutional holders of crypto assets including exchanges, custodians, traditional financial institutions, funds, family offices, and ultra-high-net-worth individuals. In addition to insuring against online hacks, Evertas also insure against loss of private keys, technology errors and omissions.
Technology errors and omissions include smart contract failures, exchange outages and hardware malfunctions. This type of coverage is bought by cryptocurrency platforms to insure their legal liability to recover users’ funds in the case of a technology failure.
Etherisc is a promising startup that aims to make the purchase and sale of insurance more efficient, enable lower operational costs, provide greater transparency to the insurance industry, and democratize access to reinsurance investments by building a platform and open protocol for decentralized insurance applications.
It is a smart contract protocol for insurance on the Ethereum blockchain. Presently, the only licensed insurance on Etherisc is for flight delays and cancellations. Users can buy this insurance to insure against real-world flight cancellations or delays.
Several other insurance protocols such as hurricane insurance, crypto wallet insurance and crop insurance have been developed on Etherisc, but none of them has been licenced by the government. The goal of Etherisc is to tokenize reinsurance risks and make them available on a global open-access marketplace.
Coincover is a centralized insurance option available for crypto wallets, smart contracts and exchanges.
Individuals can not buy insurance directly from Coincover, as it is created to insure cryptocurrency companies from online hackers. Any crypto exchange that has the stamp “protected by Coincover” has the funds stored in it insured against a security breach.
With Coincover, companies can sell additional insurance coverage to their clients. For example, exchanges can sell you private key coverage, so you can be insured in case you lose your private keys.
Coincover had a unique cryptocurrency storage solution that makes it possible for its users to have an insured crypto wallet where all their cryptocurrency will be replaced whenever there is a security breach.
Aon is a traditional insurance company that provides professional risk solutions to businesses. It is a publicly-traded company on the New York Stock Exchange.
Aon also offers commercial risk solutions in several blockchain-related ventures like crypto brokerages, cryptocurrency miners and blockchain protocols.
The company insure a Montreal-based cryptocurrency exchange called Shakepay. You can use Shakepay with confidence knowing that any loss due to a security breach is insured by a well-known insurance company.
InsurAce is a decentralized, multi-chain DeFi insurance services platform. It is a major complement to the DeFi market. The services of insurAce currently include Ethereum, Binance Smart Chain, Solana, Polygon, Fantom and Heco. InsurAce offers competitive portfolio premiums, sustainable investment returns and smart contract insurance. Most importantly, it protects users’ investments against risks.
DeFi insurance from InsurAce is reliable and secure, making it highly desirable among those looking to protect their funds from the risks involved in the crypto space. There are two platforms on insurAce and they include DeFi insurance and DeFi investment.
Together, these platforms offer stable profits for the insured, the insurer and the investors. InsurAce eliminates the need for KYC, allowing users to remain anonymous. The company provides low insurance premiums, high returns on investments, cross-chain coverage and high wallet accessibility.
7. Saffron Finance
Saffron is a peer-to-peer risk adjustment protocol. Users customize their risk and return profiles by selecting their own degree of exposure to underlying platforms.
The protocol’s main use case is to act as an intermediary between liquidity providers and lending protocols, where liquidity providers can provide liquidity to lending protocols through various SFI tranches. The protocol’s native token SFI is used to gain access to specified tranches on the protocol via staking as well as to govern the protocol. Upon its upcoming V2 release, SFI holders will also have a future entitlement to protocol fees.
The protocol currently offers 3 tranches for liquidity providers (S tranche, Yield Enhanced A tranche, and Risk Mitigated AA tranche).
In the event of a failure of an underlying lending platform, liquidity providers in the riskier tranches will be in a position of first loss, while liquidity providers in more senior tranches are effectively insured. In exchange for this, “insurance” liquidity providers in the senior tranches receive a lower yield.
8. Tidal Finance
Tidal Finance is a project to establish a decentralized insurance marketplace in the DeFi space to connect insurance sellers and buyers to cover smart contract hacks risk.
Tidal offers the functionality to create custom insurance pools for one or more protocols. The main objective of the platform is to maximize capital efficiency and return to attract reserve providers while offering competitive insurance premiums to attract buyers.
In order to increase the adoption of DeFi instruments, confidence in these protocols must be increased. Tidal solves the problem of hacks and manipulations in a way that is economically attractive to users of DeFi protocols.
Harpie is a simple crypto protection plan that scales with all your crypto tokens, NFTs and other digital assets.
Harpie connects to all your Ethereum wallets, giving you the power to protect tokens and NFTs within each one from loss. Harpie protects you from theft, hacks, natural disasters, and all other circumstances.
Harpie allows you to protect all wallets from one interface. It is compatible with most crypto wallets. It offers unlimited coverage for every wallet with one subscription. Harpie plans to allow you to protect as many wallets as you want without having to increase the cost of your subscription.
10. Bridge Mutual
Bridge Mutual is a decentralized coverage platform that lets users purchase or underwrites insurance for crypto assets, decentralized protocols, and various centralized services. Users can protect their crypto portfolios from hacks, bugs, exploits, and rug pulls, or earn high yields on stablecoins as insurance underwriters.
Unlike other similar protocols, Bridge Mutual has no KYC requirements because it is decentralized, permissionless, and privacy-focused. It works by connecting coverage providers and policy purchasers.
Coverage providers underwrite insurance policies by depositing collateral in USDT to specific coverage pools. In exchange for providing liquidity, insurance underwriters earn revenue from token rewards and the premiums paid by the insurance purchasers in the particular coverage pools. The rewards are paid in BMI, Bridge Mutual’s native token.
CoinBuns.com content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying, or selling of cryptocurrencies and digital assets should be considered a high-risk investment and you are advised to do your own research before making any decisions.
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