This article was first published on SALT Lending Official Blog - Medium
SALT is excited to announce we’ve upgraded and expanded our insurance coverage to better protect your assets. As of February 2019, our new crime insurance policy covers 100% of collateral assets held in our cold storage. Not everyone can say this.
Some companies rely on a third-party custodian to store their customers’ assets. If the custodian has an insurance policy that extends to its clients, it’s important to understand the policy and what it means for your assets. Rather than offering a specific coverage limit to each client, the pool of clients shares a coverage limit. This means that while the policy holder is insured, your personal assets might not be.
Confusing? We think so, too.
The reality is that in this case, insurance coverage is contingent on two factors: the total value of the assets held on the platform and the client that makes the insurance claim first. A coverage limit shared by multiple clients of the policy holder likely does not equate to the total value of assets held on the platform to which the coverage limit applies. So, depending on how many assets are on the platform and how many clients share the coverage limit, maybe a percentage of your assets held on that platform would be covered in the event of theft or fraud, or maybe none of them would be. Additionally, because the coverage limit applies to all of the assets held on the platform and is not per client, one client may experience loss or theft of their customers’ assets, make a claim to the insurance provider, and max out the insurance coverage, leaving the remaining clients under that policy with no coverage at all.
That’s why it’s important to ask the right questions and truly understand if and how your assets are covered given various scenarios. No ...
To keep reading, please go to the original article at:
SALT Lending Official Blog - Medium