Vouch, the Insurance of Tech, is live with the first insurance solution designed for Web3 companies. The company is underwriting Web3 companies with policies broadened to cover smart contract vulnerabilities, DAO’s, crypto and more.
“Insurance is a critical part of the financial operating system for every company. Without the right coverage, founders’ personal assets and the entire company can be at risk – and Web3 is no different,” said Jared Klee, Director of Web3 for Vouch.
Over the past 18 months, over 3,000 Web3 startups have raised almost $40 billion. Many of these are led by founders building strong companies that solve real problems for real users. To date, Web3 companies have had no option but to settle for insurance that didn’t address their unique needs and risks, or go without insurance at all, limiting their growth.
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“We’re live and ready to insure the many Web3 founders who are building successful, long-term businesses. At the same time, we won’t hesitate to turn away any companies that appear to have questionable business practices,” added Klee.
Web3 is the latest area of coverage for Vouch. With $160 million raised from top-tier Silicon Valley institutions and backing from world-class reinsurers, Vouch is the trusted partner that will be there when needed the most. Launch clients for the Vouch Web3 Protection Policy include Ansible Labs, Bitwave, Stardust, and Utopia Labs.
“Ansible Labs is building a global programmable money movement platform and the right insurance policy plays a key role in instilling trust in our customers and partners” said Dan Mottice, Co-Founder and CEO of Ansible Labs. “Vouch’s Web3 policies were purpose-built for companies like ours, and their ability to quickly analyze and assess our unique needs was unmatched.”
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While traditional policies broadly exclude crypto, Vouch’s Web3 Protection Policy has been designed with crypto, DAOs, NFTs, smart contract vulnerabilities, and more in mind. It includes four coverages expanded to address key Web3 risks based on a client’s specific needs:
- Directors & Officers (D&O): Helps protect the company and the personal assets of founders, officers and board members for covered claims alleging wrongful acts, such as misrepresentation or breach of fiduciary duty, along with the cost to respond or defend to the allegations.
- Errors & Omissions (E&O): Helps protect the company in situations where there is a claim for the company’s services allegedly causing a financial loss to a customer.
- Cyber: Helps cover the cost of data breaches caused by mistakes, hacking and social engineering, as well as protection against privacy violations, security failures, and system failures.
- Crime: Helps protect the company against employee theft, forgery and fraud, as well as protection for certain digital assets.
To further address the needs of its Web3 customers, Vouch has also assembled a strong partner network to complement its own coverage. The partner network includes Fireblocks for direct custody technology, Silicon Valley Bank for banking, Upside for token management, and Tactic for accounting.
“At Fireblocks, our priority is to minimize risks for our customers by mitigating counterparty and loss of funds risks as well as removing the complexity of working with digital assets,” said Adam Levine, Vice President & Head of Corporate Strategy at Fireblocks. “For risks beyond digital asset management, we’re proud to partner with Vouch to help clients further derisk their operations and meet compliance obligations so that they may scale their companies in a safe manner.”
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