Liberty Specialty Markets launches crypto protection for financial institutions

Liberty Specialty Markets, part of Liberty Mutual Insurance Group, announced the launch of a dedicated product for financial institutions operating in the cryptocurrency market.

The product is designed for European crypto-asset service providers, particularly those compliant with the EU’s Markets in Crypto-Assets directive; a framework established to create uniform rules and better protection for investors. Coverage includes risks related to professional liability, management errors, theft and fraud.

Offering limits of up to €3 million, the product will allow LSM to support the range of providers, from traditional banks and asset managers to blockchain startups. It has been developed in response to increased demand from the financial sector, which faces ongoing uncertainty due to rapid macroeconomic, regulatory and technological changes, such as the rise of digital banking and cryptocurrencies.

“The crypto revolution presents significant opportunities, with increasing adoption redefining economic and financial relationships worldwide. The complex risks associated with that are however a major strategic issue for financial institutions. The product announced today has been meticulously created, working with our cyber and technology teams to close knowledge gaps that can hinder crypto insurance propositions, allowing clients to pursue opportunities in the fast-developing crypto market safely.” – Jorge Chao, head of financial institutions, LSM Europe.