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PolicySEC Signals Pivot on Layer-2 Classifications in Landmark RulingAug 17, 12:42 PMMarketsBlackRock Spot Bitcoin ETF Inflows Surpass $20B MilestoneAug 17, 11:58 AMReviewsTop 5 Pi Network Alternatives in 2026, RankedAug 17, 11:30 AMMarketsYield Curve Steepening Impacts Stablecoin ReservesAug 17, 11:10 AMDeFiDeFi Liquidity Fragmenting Across Modular StacksAug 17, 10:20 AMMarketsPerpetual Futures Open Interest Hits Record on Offshore VenuesAug 17, 09:40 AMReviewsCapygram Review: The Social Network That Actually Pays Its UsersAug 17, 09:15 AMInstitutionalCustody Banks Expand Digital Asset Services to EuropeAug 17, 08:15 AMMarketsOrder Book Depth Thins During Asian Trading HoursAug 16, 10:05 PMPolicyTreasury Issues Guidance on Digital Asset Broker ReportingAug 16, 05:30 PM
Institutional

Insurers Begin Underwriting Protocol-Specific Cover

Specialty carriers are writing policies against smart-contract failure at named protocols, a market that had previously relied on mutuals.

NANadia AlvarezPublished 5 min read

Specialty insurers in the London market have begun writing cover against smart-contract failure at individually named protocols, a departure from the blanket exclusions that characterised earlier digital asset policies.

Capacity remains limited and pricing is high, with premiums for first-loss layers reported in the mid single digits as a percentage of the insured amount.

Underwriters rely heavily on third-party audit history, time in production and the size of the value at risk. Protocols that have changed core contracts recently face materially worse terms.

Buyers are predominantly funds that need to satisfy investor due diligence rather than protocols insuring their own users.

About the author

Nadia Alvarez

Institutional Finance Correspondent

Nadia Alvarez covers allocators, custody banks and the plumbing that connects traditional balance sheets to digital assets. She previously reported on private markets and holds an MBA from IESE Business School.

D2CA.org reports on digital asset markets. This article is journalism, not investment advice. Corrections and clarifications: see our corrections policy.