Liberty Specialty Markets (LSM), a division of Liberty Mutual Insurance Group, has announced the launch of a specialized insurance product designed to support financial institutions engaged in the rapidly growing cryptocurrency sector.
The product is tailored for European crypto-asset service providers, especially those operating in compliance with the EU’s Markets in Crypto-Assets (MiCA) regulation—a framework aimed at harmonizing standards and enhancing investor protection across the bloc. The coverage addresses a range of exposures, including professional liability, management errors, theft, and fraud.
With coverage limits of up to €3 million, the product enables LSM to support a broad spectrum of financial institutions—from traditional banks and asset managers to emerging blockchain startups. It was developed in response to growing demand from the financial sector, which continues to navigate uncertainty driven by rapid macroeconomic shifts, evolving regulations, and technological advancements such as the rise of digital banking and cryptocurrencies.
Building on over 20 years of experience in insuring European financial institutions, LSM’s latest offering expands its comprehensive portfolio, which already includes bankers’ blanket bonds, professional liability, directors and officers (D&O) coverage, and more.
“The crypto revolution presents significant opportunities, with increasing adoption redefining economic and financial relationships worldwide. The complex risks associated with that are however a major strategic issue for financial institutions,” commented Jorge Chao, head of financial institutions, LSM Europe, in a statement.
“The product announced today has been meticulously created, working with our cyber and technology teams to close knowledge gaps that can hinder crypto insurance propositions, allowing clients to pursue opportunities in the fast-developing crypto market safely,” Chao added.
Source: Liberty Specialty Markets (LSM)
