We’re proud to publicly announce that Coinbase holds insurance against theft or loss of its bitcoin. We’ve been insured for almost a year, but given the recent claims of insurance in the industry, thought it was appropriate to tell our users about it. Our users, of course, won’t be charged for this insurance.
Coinbase is insured against theft and hacking in an amount that exceeds the average value of bitcoin we hold in online storage at any given time. The insurance covers losses due to breaches in physical or cyber security, accidental loss, and employee theft. It doesn’t cover bitcoin lost or stolen as a result of an individual user’s negligence to maintain secure control over their login credentials.
We think it’s important consumers understand what’s behind their insurance. Some bitcoin wallets may claim to be “fully insured” while not working with accredited carriers or outright self-insuring. Others may be able to claim “fully insured” at the moment because their number of bitcoin stored are so low that a small insurance policy happens to cover everything until they grow. We teamed up with Aon, the world’s largest insurance broker, and only use underwriters with high credit ratings (S&P rating of A+ or A.M. Best Rating of A XV or higher).