Cryptocurrency insurer Evertas is now insured to cover policies of up to $420 million from its previous limit of just $5 million, Reuters reported on Friday.
London-based Arch Insurance International, a syndicate member of Lloyd's of London, has authorized Evertas to increase its coverage limit for a single policy for crypto custodians and exchanges to $420 million in a significant boost for risk management in the cryptocurrency industry.
New York-based Evertas insures crypto wallets against hacks and thefts which often blight the industry's reputation and hinder wider adoption. Hackers have stolen around $400 million from crypto projects so far this year, according to a report by blockchain intelligence firm TRM Labs.
The firm writes crypto insurance on behalf of Arch in its role as a "coverholder," which international insurance firms turn to for specialized knowledge of complex risks.
Evertas, which only writes insurance for custodians with private keys, raised $14 million in funding last December, led by Polychain Capital and including contributions from Morgan Creek Matrixport and HashKey among others.
Neither Evertas nor Arch immediately responded to CoinDesk's request for comment.
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