Article ID: 0535a921670237e9234aca34d5c2b8f3b67210fcb92a445d349e164209dfe1c5
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Digital asset risks require policy changes to ensure coverage - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Digital asset risks require policy changes to ensure coverage by Gavin Souter From left, John Failla, Sarah Katz Downey and Julia Ferreira participate in the digital assets session at Riskworld. Agents and Brokers , Cyber Risks , Emerging Risks , Technology Lockton May 5, 2026 PHILADELPHIA – Digital assets have entered the financial mainstream, bringing familiar risks in new forms and exposing gaps in traditional insurance coverage, according to a panel of experts. Some insurers are offering specialized coverage, but they have to adapt quickly to address emerging risks, they said. Large, established companies are using stablecoins for claims and payments, while others hold bitcoin as an asset, said John Failla, a New York-based partner at law firm Proskauer. “Digital assets are now mainstream. This is no longer a fringe or emerging type of technology,” he said Monday during a session at the Risk & Insurance Management Society’s Riskworld conference. Adoption has accelerated as regulatory clarity improves and traditional companies enter the sector, often through acquisitions, said Sarah Katz Downey, New York-based global blockchain & digital assets advisory leader at Lockton. “What we are seeing is a lot of merger and acquisition activity where traditional companies are buying crypto native companies that have been around for a while, trying to keep up with competition,” she said. There have been several high-profile financial losses related to digital assets, including the collapse of cryptocurrency exchange FTX, that were in some ways similar to traditional financial losses but also had other features, Mr. Failla said. Blockchain technology can amplify losses because of its speed and finality. “Because these trades are final, they’re immediate. Once they’re on ledgers, they don’t get reversed, and they happen quickly,” he said. Insurance coverage is evolving but largely relies on existing products, such as cyber liability, errors and omissions, directors and officers liability, and specie coverage, said Julia Ferreira, vice president, corporate insurance at Bank of New York Mellon. Traditional crime policies, which usually cover the loss of tangible assets, such as cash or stock certificates, should be updated to cover digital assets, Mr. Failla said. “You’ve got to add, if you’ve got digital assets exposure, that property also includes digital assets, whether it’s crypto tokens, stablecoins, or other blockchain items,” he said. While some insurers are offering specialized coverage, underwriters are asking many new questions of policyholders, Ms. Ferreira said. “The underwriters want to ensure that you have a good understanding of your risk, of the compliance and what your risk management protocols are,” she said. Some digital asset companies are buying kidnap and ransom coverage, Ms. Downey said. “We are seeing an uptick in kidnapping situations involving founders and other members of organizations that are in the digital asset space, so we are also seeing a corresponding uptick in the purchase of kidnap and ransom coverage,” she said. 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