According to the announcement, the GBX has finalized the drafting of an insurance policy in collaboration with Gibraltar-based Callaghan Insurance, which will be responsible for administering the policy.
The policy will insure digital assets listed on the GBX exchange and will cover both cold wallets (stored offline) and hot wallets (stored online). The announcement also states that “the new insurance coverage covers all forms of professional indemnity.”
For those readers unfamiliar with professional indemnity insurance, it provides insurance coverage for certain professionals who allegedly provide inadequate services to their clients/customers. The insurance covers legal costs and expenses in defending claims such as malpractice, breach of duties, and professional negligence. It is unclear to what extent such coverage will benefit the average customer with digital assets stored on the exchange, and the announcement fails to go into further detail.
Going back, The GBX recently obtained full regulatory approval from the Gibraltar Financial Service Commission by receiving a “Distributed Ledger Technology (DLT license).” But, outside the island, it is far from the first financial services company to provide its clients with digital asset insurance.
Doing this advancement is already a great start, and overall, this move from the GBX is a huge leap for making blockchain technology such a great ingredient in transforming the insurance industry especially in a country like Gibraltar.