BitGo Secures Insurance Coverage of $250,000 for All Bitcoin Holders

BitGo, the early pioneer in multisignature technology, has secured insurance coverage against theft of up to $250,000 for all of its account holders. Customers can purchase additional coverage for an additional fee of 1% of the coverage amount.

Bitcoins under BitGo's care will be underwritten by XL Group. The product was customized for BitGo specifically, in conjunction with Innovation Insurance Group LLC. Ty Sagalow, who heads the latter group, is formerly the chief underwriting officer and chief innovation officer at insurance giant AIG.

BitGo becomes one of a select few wallet providers offering full coverage on deposits. Various offerings have been previously launched by Coinbase, Elliptic and Circle. Sagalow said that BitGo's coverage is most suitable in today's world of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term. He explained:

"We have seen early attempts at insurance in the bitcoin market, such as those based on a captive model funded with cash reserves or ‘crime’ policies that solely cover employee theft of Cold Storage Cold Storage Cold storage is a computer system or mode of operation that is designed for the retention of inactive data, in this case private keys for cryptocurrencies. This helps put up resilient barriers against theft by hackers and malware, and is often a necessary security protocol especially dealing with large amounts of Bitcoin.In order to “own” a cryptocurrency, one must be in control of a cryptocurrency’s private keys. As such, private keys are long strings of random characters that can be used to se Cold storage is a computer system or mode of operation that is designed for the retention of inactive data, in this case private keys for cryptocurrencies. This helps put up resilient barriers against theft by hackers and malware, and is often a necessary security protocol especially dealing with large amounts of Bitcoin.In order to “own” a cryptocurrency, one must be in control of a cryptocurrency’s private keys. As such, private keys are long strings of random characters that can be used to se Read this Term keys. While this was suitable for Bitcoin’s formative years, it does not scale to the requirements of today’s ecosystem."

BitGo's coverage includes all forms of theft, including hackings from external attackers, a problem that has yet to subside.

BitGo's robust multisig solutions have yet to be compromised, and have been employed by Bitstamp, Bitcoin Foundation and others. Thus, the underwriter can afford to offer low premiums, knowing that future claims will likely be a rare occurrence.