Insurance Brokerage Giant Gallagher Launches Solution for Australian Digital Asset Firms

Civil Liability Cover

Insurance broking giant Gallagher has unveiled a specialized insurance product designed to address the risks faced by Australian companies managing digital assets. Known as Gallagher Crypto-Pro, the product aims to help Australian companies operating in this sector comply with proposed changes in licensing requirements.

According to a report by Insurance Business Magazine, companies seeking to obtain the Australian Financial Services License (AFSL) must demonstrate their ability to compensate retail clients as required by the Corporations Act 2001. Gallagher frames the insurance product as a priority for fintech companies keen on avoiding regulatory issues.

As explained in the report, the insurance product covers civil liability linked to digital asset investments. It also includes crime insurance for losses associated with cold and hot breaches, as well as access to recovery specialists for asset recovery and forensic analysis. Additionally, it offers full-limit mitigation cost coverage for responding to asset-related incidents.

However, Gallagher warned that crypto companies operating in or targeting the global cryptocurrency market require more than just a simple insurance product.

“For firms operating in the global cryptocurrency market, adapting to regulatory changes in multiple jurisdictions remains an ongoing challenge. Comprehensive insurance coverage and expert advice are critical to mitigating these risks while enabling growth and innovation in the digital asset space,” the insurer reportedly advised.

Meanwhile, the report suggested that Australian fintechs may require different types of coverage for specific risks they face. For instance, firms may need a product specifically designed to address financial losses tied to technology failures or service disruptions. They may also need coverage for losses arising from data breaches or cybersecurity incidents.