Liberty Specialty Markets, which is part of Liberty Mutual Insurance, has launched a dedicated product offering professional liability, management errors, theft and fraud cover for financial institutions operating in the cryptocurrency market. It provides limits up to €3m and will target European crypto-asset service providers, particularly those compliant with the EU’s Markets in Crypto-Assets directive.

LSM said the product would enhance its existing range for financial institutions, which includes bankers’ blanket bonds, professional liability, and D&O covers.

Jorge Chao, head of financial institutions, LSM Europe, said: “The crypto revolution presents significant opportunities, with increasing adoption redefining economic and financial relationships worldwide. The complex risks associated with that are however a major strategic issue for financial institutions.

“The product announced today has been meticulously created, working with our cyber and technology teams to close knowledge gaps that can hinder crypto insurance propositions, allowing clients to pursue opportunities in the fast-developing crypto market safely.”