San Francisco-based Coinbase has published an interesting blog post on Wednesday, which essentially serves a means of comforting its users.
In short: the company announced that it holds insurance against both theft and loss of the bitcoin they hold — much of which belongs to its over one million users.
Interestingly enough, however, they say that they have been insured since November of 2013, adding that “given the recent claims of insurance in the industry,” felt it appropriate to inform its user base.
[blockquote style=”2″]Coinbase is insured against theft and hacking in an amount that exceeds the average value of bitcoin we hold in online storage at any given time. The insurance covers losses due to breaches in physical or cyber security, accidental loss, and employee theft. It doesn’t cover bitcoin lost or stolen as a result of an individual user’s negligence to maintain secure control over their login credentials.[/blockquote]
While other companies may claim to be insured, Coinbase says they’ve partnered with mega insurance broker Aon, and only use underwriters with high credit ratings (S&P rating of A+ or A.M. Best Rating of A XV or higher).
For users of the service, the news is welcomed. Many in the community fear holding bitcoins anywhere other than their own possession, and for good reason (see the Mt. Gox debacle earlier this year).
Users are not — and will not be — charged for the insurance.