The manufacturer of the popular Ledger Nano has announced that it took out another insurance policy to protect the digital assets of the users of its hardware wallet. The latest policy, valued at $150 million was signed with Marsh, a risk advisory firm and Arch Insurance Limited.
The implication of this policy is that the assets belonging to the users of the hardware wallet are insured against third-party theft. This makes sense since the security of digital assets is among the top concern of holders because third parties are not involved in the ownership and used of these assets due to its decentralization.
This would cover the users of Ledger against third-party breach of security such as physical compromise and theft of private keys due to faults that were traced to the physical state of the hardware used in securing cryptocurrencies of users.
Of concern to Ledger and why the company may have gone for insurance policy is to cover the uses against possible breach in security of hardware security module (HSM) in one of its data centers. Another weak link in securing the assets of users of hardware wallets is information leaks during customer registration. This is the point at which private keys are generated.
This policy covers all the cryptocurrencies supported by the Ledger Vault platform. Improvements on the ledger platform have been targeted at security with $75 million raised early in the year meant to boost the confidence of institutional investors to embrace custodial service of the crypto industry.
“Clients that are part of this insurance program for Ledger Vault have the ability to obtain a dedicated limit that is dependent on the assets held on the Ledger Vault platform,”
said Jennifer Hustwitt, senior vice president at Marsh & McLennan Companies, the insurance broker’s parent.