The digital asset space moves fast, and so do the risks that come with it. From NFT (Non-fungible tokens) marketplaces to centralised crypto exchanges, businesses operating in this sector face a complex and evolving range of exposures that don’t map cleanly to standard perils covered in traditional insurance policies.
At Jensten, our Tech, Media, Cyber and Life Sciences (TMCS) team specialises in understanding these kinds of risks. We arrange Digital Asset & Crypto Insurance to help cover the specific needs of businesses operating across the digital asset sector, whether you’re building on-chain infrastructure, tokenising real-world assets, or running exchange operations at scale.
The illustrative scenarios below show the types of exposures we identify for clients in this space, and the insurance solutions we arrange to help protect them.
NFT Marketplace Smart Contract & CustodyCover
Sector: NFT Marketplace
NFT marketplaces manage high volumes of minting activity and secondary transactions. The smart contract and custody exposures in this space are often underestimated.
Exposures Identified:
- Vulnerabilities in minting smart contracts, allowing duplication or counterfeit NFTs
- Hot-wallet exposure during asset settlement
- IP/title disputes from incorrectly attributed artwork
- Metadata hosting risk from centralised servers
Insurance Solutions Provided:
- Smart Contract Failure Insurance for logic defects and code exploits
- Custodial Hot Wallet Crime Cover for theft or unauthorised transfer
- Digital IP & Title Warranty Cover for copyright-related claims
- Cyber/Data Integrity Cover for metadata corruption or unauthorised access
Tokenisation Platform Operational & Technology Liability Insurance
Sector: Asset Tokenisation
The tokenisation of assets is an operation located within conventional banking and blockchain technology in terms of changing the real asset into its digital counterpart in the form of a token. As such operations are technically intricate, any one fault in the process from the smart contract, third-party feeds, and reconciliations could be financially damaging.
Exposures Identified:
- Smart contract malfunction affecting redemptions or distributions
- Oracle manipulation leading to inaccurate valuations
- Custody exposure during on-chain/off-chain reconciliation
- Governance mechanism failures impacting token holder rights
Insurance Solutions Provided:
- Technology E&O covering contract execution and lifecycle errors
- Oracle Failure/Manipulation Insurance for incorrect external data feeds
- Bridge & Reconciliation Custody Cover for transitional exposure
- Governance/DAO Smart Contract Insurance for vulnerabilities in voting systems
Centralised Exchange Crypto Crime & Infrastructure Protection
Sector: Crypto Exchange (CEX)
The centralised exchanges carry out millions of transactions of cryptocurrencies every day as the custodian of clients’ money through hot wallets and cold wallets. This implies that the large number of transactions, access to these exchanges, and the constant pressure on them pose many risks for them. The risks can be both from outside parties and inside.
Exposures Identified:
- Hot wallet vulnerability to external hacking
- Insider threats from privileged access
- Operational errors causing ledger discrepancies
- Cold storage key-management failures
- Social engineering attacks on admin or customer service staff
Insurance Solutions Provided:
- Digital Asset Crime Cover for external hacks and hot wallet compromise
- Insider Theft & Misappropriation Cover for fraudulent employee actions
- Technology E&O Policy for system errors and reconciliation failures
- Cold Storage Protection for key compromise or MPC/HSM breakdown
- Social Engineering/Impersonation Insurance for credential theft
Speak to Our TMCS Team
If your business operates in the digital asset space, getting the right cover in place is recommended before an incident occurs, not after.
Our brokers have extensive experience working with businesses across the technology and digital asset sectors for their insurance needs. We take the time to understand your operations and arrange cover that reflects the actual risks you face.
To find out more about the policies we arrange, visit our Digital Asset & Crypto Insurance page, or explore the wider range of cover available from our TMCS team, including Cyber Insurance, Fintech Insurance, and IT Professionals cover.
Get in touch with us to discuss your requirements with one of our knowledgeable brokers.