BitGO, a bitcoin financing company, teams up with A-rated insurance company XL Group to provide security to bitcoin users. All customers of BitGO are to be covered under a policy from the global insurance provider, insuring up to $250,000 of qualifying theft claims. The agreement between the two companies has resulted in the first comprehensive coverage of a bitcoin company.
“BitGo’s multi-signature architecture delivers a significant level of security, realizing how seriously they take cyber security; we confidently developed a comprehensive insurance solution that offers BitGo and their customers another layer of protection,” said John Coletti, Chief Underwriting Officer of Cyber and Technology Insurance for XL Group.
The security of bitcoin has been of concern to users, investors, and insurers due to numerous incidents of hacking and theft, but this historic partnership may change that. BitGo’s innovative multi-sigs system has added confidence to the security of there system, allowing the major, global insurer to take a stake in the bitcoin business.
“The entrance of an underwriter of XL Group’s size and reputation signals that the technologies and standards for bitcoin security, like multi-sig, have reached a threshold of viability to take the industry to the next level. For our large enterprise customers, an insurance-backed guarantee is the final missing ingredient for peace of mind in a robust security software offering,” said Will O’Brien, CEO and co-founder of BitGo.
BitGo offers insurance services for currency in hot wallets and in long term storage. Policy holders are also protected from harm initiated or propagated by BitGO itself. This means consumers are protected from employee theft or error, as well as external hacking.
Read More – BitGO Secures First Ever Comprehensive Bitcoin Theft Insurance for up to $250,000 (CoinTelegraph, Allen Scott)