Jennifer Odrobina, VP, Technical Insurance Claims Specialist, recently shared her view on bitcoin, the digital asset revolution, regulatory confusion and insurance market implications in a Law360 article she by-lined with David J. Buishas of BatesCarey LLP. In the article, they discuss the inception of digital assets—from bitcoin and blockchain to the evolving cryptocurrencies and initial coin offerings (“ICO”), and highlight the resulting digital asset regulations and implications on the insurance market.
Commenting on the impact on the industry, which is currently grappling with difficult decisions on how to interpret and apply traditional insurance products to the recent string of ICO-related enforcement actions and litigation, they caution that, “policy insuring agreements and exclusions should be examined carefully to determine their applicability depending on the particularity of the ICO-related claim,” and note, “A solution for insurance companies that do not want to cover such risks could be to include a cryptocurrency exclusion by endorsement or on the base form of the policy. A solution for insureds who may wish to cover potential cryptocurrency exposure is to work closely with their insurance broker to ensure their exposure – whether E&O, D&O or another – is appropriately tailored to fit within the policy’s insurance grants and not precluded by any exclusions.”
Read the full Law360 article.