Bitsurance: Bitcoin Insurance for Your Hardware Wallet

Bitsurance is a company that offers Bitcoin insurance for your hardware wallet. With Bitsurance, your bitcoin on your hardware wallet is insured for amounts up to €100,000.

Description

Bitsurance offers a unique insurance product designed to protect your Bitcoin held in a hardware wallet. In case of unfortunate events, Bitsurance reimburses you for lost Bitcoins up to an insured sum in euros. With Bitsurance, your bitcoin on your hardware wallet is insured for amounts up to €100,000.

How Bitsurance Bitcoin Insurance Works

Taking out Bitcoin insurance with Bitsurance is a straightforward process. After providing the necessary information, your application will be checked, and upon approval, you’ll receive a confirmation code via email. Once you enter the code, you can activate the insurance cover, which only takes a few minutes. However, a hardware wallet is mandatory for coverage. Supported hardware wallets currently include Trezor, BitBox, and Ledger.

Bitsurance offers different insurance contracts with insured amounts ranging from €10,000 to €100,000. These contracts vary in their coverage for insured risks, including fire, water damage, and predatory extortion. However, simple theft, loss of your hardware wallet, and damage exceeding your coverage limit are not covered. It’s important to note that only the value of your Bitcoins at the time of the incident will be reimbursed, not exceeding your chosen plan’s limit.

To insure your Bitcoin, Bitsurance requires your extended public key (xPub) and a signature from your wallet. This allows them to verify your ownership without needing individual wallet addresses. An xPub is a key that makes it possible to derive all Bitcoin addresses in your Bitcoin wallet. This allows them to see how much Bitcoin is in your wallet without you having to provide them with every new Bitcoin address. Bitsurance recommends creating a separate Bitcoin account specifically for the insured coins if you’re uncomfortable sharing all your hardware wallet addresses.

In case of a covered event, you’ll need to file a claim with Bitsurance, including a police report or fire department documentation. Currently, payouts are only made in Euros via direct debit, although Bitcoin payments are a future possibility. The insurance is valid for one year and automatically renews unless canceled three months before the expiry date. When a claim is approved, Bitsurance reimburses you based on the market value of your Bitcoins at the time of loss.

What’s covered by Bitsurance?

  • Fire and Lightning Damage: Bitsurance safeguards your hardware wallet against fire, lightning strikes, and related electrical surges.
  • Water Damage: Burst pipes or water leaks are covered, ensuring your hardware wallet isn’t a casualty.
  • Predatory Extortion: This plan protects you from “5-wrench attacks” where blackmail, bribery, coercion is used to coerce access to your Bitcoin.

Bitsurance Fees

Bitsurance charges fees based on the coverage amount chosen. For example, coverage up to €10,000 incurs a fee of €2.50 per month, while coverage up to €100,000 costs €25.00 per month. The contribution is annual and must be paid upfront.

Is Bitsurance Right for You?

Bitsurance offers a valuable service for protecting your Bitcoin in a hardware wallet. The Bitcoin insurance covers a range of potential threats and provides peace of mind. However, it’s crucial to understand the coverage limitations and exclusions before making a decision.

Additional information

Bitcoin Only

Headquarters

Germany

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