Bitcoin Insurance
Protect your hardware wallet from theft, loss, and hacking. Full self-custody insurance coverage.
Why Bitcoin Insurance?
Self-custody is the most secure way to hold Bitcoin — you control your private keys, not a centralized exchange. But with control comes responsibility: if your hardware wallet is stolen, lost, or damaged, your Bitcoin is gone forever.
Bitcoin insurance covers these catastrophic scenarios. You deposit your Bitcoin into an insured vault (typically multisig, requiring multiple signatures), and the insurance underwriter (often Lloyd's of London) guarantees recovery if something goes wrong.
Bottom line: Insurance makes self-custody less anxiety-inducing for large holdings.
Coverage Types
- ✓Theft
- ✓Loss (accidental damage)
- ✓Natural disasters
- ✓Hacking (in some cases)
Who Should Use It
- ✓Large Bitcoin holders (>$100k)
- ✓Institutional investors
- ✓Risk-averse individuals
- ✓Multisig setups
Cost
- ✓Typically 1-2% annually
- ✓Some require minimum holdings
- ✓Varies by vault setup
- ✓No deductibles typical
Insurance Providers
Casa Insurance
Hardware wallet security coverage. Simple, single-sig friendly.
Unchained Capital
Multisig-native insurance. Premium custody + insurance bundle.
Lloyd's of London
Institutional-grade insurance. Backing major institutions.
How Insurance Works
Set up multisig vault
Create a 2-of-3 or 3-of-5 multisig setup (multiple keys required to spend)
Deposit Bitcoin
Send your Bitcoin to the insured address
Pay premium
Annual insurance fee (typically 1-2% of holdings)
Sleep soundly
If theft/loss occurs, file claim and get reimbursed
| Provider | Cost | Coverage | Setup |
|---|---|---|---|
| Casa | 1-2%/yr | Theft, loss, damage | Single/Multi-sig |
| Unchained | Custom | Multisig vault | Multisig only |
| Lloyd's | Custom | Institutional grade | Custom arrangement |
FAQ
Is insurance worth it for small amounts?
Probably not. Insurance costs 1-2% yearly. Only makes sense for holdings over $50-100k.
What if I lose my seed phrase?
Insurance may not cover user error. Check the fine print. Some providers offer seed backup services.
Can I withdraw anytime?
Yes, but multisig setups require multiple approvals. Withdrawal times vary by provider.
Related Resources
Self-Custody Insurance Guide
In-depth guide to coverage options, risk strategies, and estate planning.
Multisig Wallets Compared
Many insurance providers require multisig setups. Compare your options.
Hardware Wallets 2026
The foundation of self-custody. Compare 20 hardware wallets.
Bitcoin Finance 101
Risk management and portfolio strategy fundamentals.