In collaboration with Marsh, the world’s leading insurance broker, Arch Insurance (UK) Limited has announced the launch of Blue Vault, a new solution to provide insurance protection for the secure storage of digital asset private keys held in traditional vault facilities.
Blue Vault brings together companies dedicated to providing insurance coverage for digital asset risks. Legal and technical consulting support for Blue Vault was provided by global law firm Norton Rose Fulbright. Blue Vault is the first insurance solution of its kind to be placed in the specie insurance market.
Backed by syndicates Arch 2012 and Canopius 4444, Blue Vault is as well as other syndicates and underwriters at Lloyd’s of London. Available globally, Blue Vault provides limits of up to US$150 million and covers the loss of digital assets due to internal and external theft, including employee collusion, and the physical damage or destruction of private keys.
James Croome, Arch’s Vice President of Fine Art and Specie, said, “When it comes to the critical risk around the generation and storage of digital assets, it is not just the way sensitive material is stored, but a complete and detailed understanding of the entire life cycle of the private keys. A breach at any stage could cause a financial loss for our clients, so it is the secure generation, transfer and storage of knowledge, not simply the possession of data that is our paramount underwriting consideration. The importance of this distinction cannot be overestimated and our insurance policy wording was very deliberately constructed to manage this risk.”
