As the crypto market crashes, some insurance companies are stepping up efforts to exclude coverage for crypto-related risks under a range of insurance policies.
But because crypto is still new, insurers are having a hard time defining and pricing the risk. The lack of a clear regulatory framework also makes it challenging to unambiguously exclude crypto risks from businesses’ insurance policies, potentially leading to losses for insurers, according to insurance lawyers, brokers, and directors.
Crypto coverage matters began to emerge in the last five years. But most have resolved before getting to litigation, in part because insurers want to avoid setting unfavorable legal precedent, said Orrie Levy, a partner at Cohen Ziffer who works with policyholders.
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