Lloyd’s of London has a very long history of insuring where other insurers fear to tread. It has insured everything from Rolling Stones guitarist Keith Richards’ fingers to soccer star David Beckham’s legs as well as the more mundane coverage such as cargo shipments and vessel hulls.
Now it is quietly backing coverage to protect against cryptocurrency theft.
Lloyd’s provides coverage through managing agents working with underwriting syndicates. Some of those syndicates are insuring Kingdom Trust, a qualified custodian of some 30 cryptocurrencies and tokens, against theft and loss due to natural disaster, Kingdom Trust announced. The syndicates were not named and, according to CoinDesk, Lloyd’s itself would not comment.
According to CoinDesk, just last month Lloyd’s issued a directive to all its syndicates warning them to proceed with caution on crypto assets, and to make sure the managing agents know what they are doing when it comes to the underlying risks.
But now, according to Jerry Pluard, head of the brokerage that arranged Kingdom Trust’s coverage, Illinois-based Safe Deposit Box Insurance Coverage, “About 10 syndicates in Lloyd’s have indicated a willingness and are somewhat active in evaluating crypto exposures.” Read more here.