One of the issues with Bitcoin is security. For users who keep their funds in exchanges or other online storage systems, there’s little recourse from a hack or other security breach.
Customers at Mt. Gox, Flexcoin, and Dogevault learned that the hard way.
But Coinbas has a new way of reassuring its users: insurance.
Insuring Bitcoin
“We’re proud to (sic) publically announce that Coinbase holds insurance against theft or loss of its bitcoin,” the company posted on its official blog.
They report having been insured since November 2013, but are announcing it now “given the recent claims of insurance in the industry”.
Coinbase’s insurance covers losses from “breaches in physical or cyber security, accidental loss, and employee theft”, but specifically does NOT cover user negligence, especially “bitcoin lost or stolen as a result of an individual user’s negligence to maintain secure control over their login credentials.”
In other words, if Coinbase screws up, they’ve got you covered. If you screw up, you’re on your own.
Coinbase is working with the world’s largest insurance company, Aon, and has been insured for an amount “that exceeds the average value of bitcoin we hold in online storage at any given time.
“Our users, of course, won’t be charged for this insurance.”
Given the security issues the Bitcoin community has faced over the last several months, it’s good to see companies taking their own security seriously.
Coinbase Announces Its Insurance Policy, Nearly A Year Later
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