Insurance for Crypto, Blockchain & Web3 Companies

The crypto/Web3 vertical spans cryptocurrency exchanges, decentralized finance platforms, custodial wallets, NFT marketplaces, tokenization platforms, DAOs, gaming projects and payment processors. These businesses combine technology, finance and digital asset custody, creating novel exposures.

In response, specialized insurance programs draw on multiple lines: D&O/Management Liability for governance and executive claims, Cyber for hacks and data breaches, Crime/Specie for theft and fraud, Crypto Custody policies for lost or stolen digital assets, Technology E&O/Professional Liability for software/service failures, and Portfolio Insurance (often combined forms) for operational losses. Each line covers distinct risks and has unique exclusions.

This guide explains the crypto/Web3 risk landscape and how insurers and brokers structure coverage. We compare different insurance lines in a table, highlight critical policy definitions and exclusions, outline underwriting criteria, present realistic claim scenarios, and provide a management checklist. We also answer common questions founders and executives ask. Throughout, we distinguish D&O from cyber, crime and custody insurance. 

As a Lloyd’s-accredited, internationally-licensed broker, LAMDA Broking helps Web3 firms align their insurance program with evolving MiCA, SEC and other regulations across the US, EU, UK and Israel. Our global network of syndicates and specialist carriers can place tailored coverage for blockchain businesses worldwide.

What Businesses Are Covered? Crypto, Web3 and Blockchain Models

“Crypto and Web3 companies” cover a diverse set of business models. Each has distinct operations and exposures. Key categories include:

• Centralized Exchanges (CEX): Online trading platforms (like Binance, Coinbase) that match buyers and sellers and often hold customers’ assets in hot or cold wallets. Risks: operational failures, asset custody breaches, unlicensed activities, AML/KYC lapses, price manipulations, token listing decisions. Relevant Insurance Lines: D&O (for management claims and regulator investigations), Cyber (platform hacks, data breaches, business interruption), Custody/Specie (loss of digital assets), Crime (employee or vendor fraud), Tech E&O (platform failures), and even Securities E&O if token offerings are involved.
• Decentralized Exchange (DEX) Protocols: Smart-contract based markets (like Uniswap) where trading and liquidity are automated. Risks: smart contract bugs, governance failures, liquidity pool misuse, forking risks. There is often no single operator, but developers and DAO leaders could face liability. Lines: Tech E&O or Financial E&O (for protocol errors), Cyber (code exploits), D&O (if a DAO has formal governance or if a team manages the code), and Crime/Custody (if assets are stolen due to protocol exploits). Note that D&O coverage for a purely decentralized protocol may be limited since there are no traditional officers, but some DAOs form LLCs with managers who could be insured.
• Crypto Brokers and OTC Desks: Firms executing trades on behalf of institutional clients or the unbanked, sometimes holding digital assets for short periods. Risks: licensing (MSB, broker-dealer), custody compliance, AML issues. Lines: D&O (misrepresentations or license violations), Tech E&O (trading errors), Crime (internal theft), Cyber (platform security).
• Fiat-Crypto Platforms and Payment Processors: Services converting between crypto and fiat or facilitating crypto payments (e.g. BitPay). Risks: Money transmitter regulations, sanctions compliance, banking relationships. Lines: D&O (regulatory claims), Cyber (data breaches, fraud by outsiders), Crime (employee theft), Tech E&O (integration failures).
• Custodians and Wallet Providers: Companies (like Coinbase Custody, BitGo) that hold customers’ private keys, either hot, warm or cold. Risks: Loss or theft of keys, inadequate segregation of client assets, hot wallet compromises. Lines: Crypto Custody/Specie Insurance (covers direct loss of insured crypto assets due to hacking, theft or staff dishonesty), Cyber (breach response costs), D&O (claims if custody controls failed), and Crime (theft by employees).
• Stablecoin Issuers: Firms issuing coins pegged to fiat or commodities (e.g. USDC, Tether). Risks: Reserve mismanagement, peg failures, regulatory scrutiny (often treated like payment or securities). Lines: D&O (alleged misstatement of reserves or regulatory non-compliance), Cyber (reserve management systems), Custody (where reserves are held), and Tech E&O (software governing the coin). Under EU MiCA rules, stablecoin issuers have additional capital and custody requirements.
• NFT Marketplaces and Art Platforms: Exchanges for non-fungible tokens (e.g. OpenSea) or digital collectibles. Risks: Copyright or trademark disputes, token fraud or misrepresentation, hot wallet attacks. Lines: D&O (if management misleads users or violates IP laws), Cyber/Custody (hacks of the marketplace or wallets), Tech E&O (platform errors leading to loss of NFTs).
• Tokenization and RWA Platforms: Projects tokenizing real-world assets (stock, real estate, commodities). Risks: Securities law compliance, asset valuation errors, custody of underlying assets. Lines: D&O (securities regulatory claims, due diligence failures), Professional Liability (mis-advice on investments), Cyber (trading platform hack), and Crime (theft of assets).
• Decentralized Autonomous Organizations (DAOs): Collectively governed projects via smart contracts or member voting. Risks: Governance failures, legal status uncertainties, treasury hacking. Lines: D&O (if there are identifiable directors or officers behind the DAO), Crypto Custody (if DAO holds treasury keys), Tech E&O (smart contract bugs).
• Web3 Gaming and Metaverse Projects: Online games or metaverse worlds with crypto economies. Risks: In-game asset theft, smart contract exploits, regulatory issues around in-game currencies. Lines: Cyber/Custody (for asset theft), D&O (misleading players or investors), Tech E&O (game platform failures).
• Crypto Lending and DeFi Protocols: Platforms offering loans, yield farming, staking. Risks: Liquidity shortfalls, smart contract exploits (e.g. flash loan attacks), interest rate miscalculations, regulatory license (money transmitter). Lines: Tech E&O (protocol failure), Cyber (hacks), D&O (mismanagement of reserves or disclosures).

Each business model has overlapping exposures but may require different emphasis. For example, a centralized exchange shares many risks with fintech firms (e.g. fiat payments) plus crypto-specific issues (private keys, tokenization). Meanwhile, a pure smart-contract platform might have more technology risk and less customer-asset custody. LAMDA’s specialists analyze the precise model to align insurance properly.

Unique Risks in the Crypto/Web3 Vertical

Crypto/Web3 firms face a complex risk narrative distinct from traditional tech or finance companies. Key features include:

• Regulatory Complexity: Crypto firms often operate across multiple jurisdictions, each with its own rules. Some countries classify tokens as securities, others as commodities or currency. For example, EU’s MiCA regime imposes licensing, capital and disclosure requirements on crypto-asset service providers, while the US has overlapping SEC/CFTC oversight. Companies may find they need money transmission, securities or commodities licenses in various states and countries. Uncertainty and rapid regulatory change mean a minor misstep (unlicensed service, AML lapse, sanctions violation) can trigger investigations.
• AML/CFT and Sanctions Exposure: Crypto’s pseudonymous nature makes anti-money laundering compliance critical. Exchanges and custodians must implement strict KYC, monitoring and sanctions screening. Failures can lead to enforcement by agencies like FinCEN (US), FCA (UK) or EU regulators. A governor or board could be sued for negligent supervision if illicit transfers slipped through. Unlike banks, crypto firms often lack decades of AML infrastructure, so shortcomings are a prime concern. Regulators expect crypto custody and trading platforms to adhere to AML/BSA rules as stringently as banks.
• Customer Asset Custody: Many crypto firms hold clients’ digital assets. If assets are commingled, transferred improperly or stolen, executives may face claims of breach of fiduciary duty. EU MiCA, for example, requires that providers holding client crypto keep the assets segregated and secure, even in insolvency. Executives touting “locked” liquidity pools (as in the SafeMoon case) could be accused of misrepresentation if insiders had backdoor access. Loss of customer funds often triggers both regulatory fines and civil suits.
• Technology and Cyber Risk: Crypto platforms are prime targets for hackers. A breach can wipe out wallets, disrupt services, and breach customer data. While a cyber policy might cover the direct costs of a hack, directors may still face D&O claims if it is alleged they ignored warnings, underinvested in security, or failed to have an incident response plan. For instance, after a hack, regulators or investors could claim management “failed to implement appropriate security controls” or “misled customers about protections.” Thus, cybersecurity is both a direct risk and a governance risk.
• Asset Volatility and Accounting: Crypto asset values fluctuate wildly. Sudden price drops or protocol failures (e.g. a stablecoin de-peg) can impact solvency. Boards may be accused of imprudent trading or not disclosing crypto inventory properly. Liquidity crises (like a “bank run” on an exchange) can spark insolvency. In bankruptcy, trustees often scrutinize management decisions (as seen with FTX), potentially leading to claims of fraudulent transfers or breach of fiduciary duty.
• Smart Contract and Product Risk: Decentralized finance relies on code. Bugs or exploits in smart contracts can cause losses. Although smart contract failures are often considered technology risk (Cyber/E&O), they can spill into management liability if, for example, leadership touted untested code as “safe”. Similarly, NFT platforms handling digital art face unique IP and valuation issues.
• Rapid Business Evolution: Crypto ventures frequently launch new products (staking, derivatives, token launches) and pivot quickly. Insurance programs must adapt to new activities. Failure to update insurers on, say, a new crypto lending arm or a token sale can create “silent exposures” that might void coverage in the event of a claim.

In summary, crypto/Web3 exposures sit at the intersection of finance, technology and regulation. Successful companies manage technical security and operational controls, but they also live under intense scrutiny for compliance and disclosure.

Which Insurance Lines Anchor the Crypto/Web3 Vertical?

Given the diverse risks, no single policy covers everything. A typical insurance program combines multiple specialty lines:

• Directors & Officers (D&O) and Management Liability: Protects individual officers and directors (and often the company itself) against claims alleging wrongful acts in management. This is the anchor for governance and oversight risks. It can cover lawsuits from regulators (e.g. SEC, CFTC, FCA), investors and customers who claim management misled them or failed to supervise. For example, if an exchange is accused of running without a proper license, regulators might investigate the CEO and board – a D&O policy could cover their defense costs. D&O typically covers legal defense costs and settlements up to policy limits, but with important caveats (see below).
• Cyber Liability: Covers losses from cyber incidents — such as hacks, data breaches, ransomware and business interruption. A cyber policy can pay for forensic investigations, system restoration, customer notification costs and even extortion payments. However, cyber insurance only handles the direct consequences of a cyberattack. It will not cover claims against directors for failing to prevent the hack. Those oversight claims would fall under D&O. Thus, cyber is crucial for operational resilience, but is distinct from management liability.
• Crime / Fidelity Insurance: Classic crime or employee dishonesty insurance can cover theft of assets (including transfers of customer assets) by employees or third parties through fraud or social engineering. For example, if an insider at an exchange steals Bitcoin from the hot wallet, a crime policy (properly endorsed) might respond. Traditional crime policies were not designed for digital currency, so insurers may require endorsements to explicitly include crypto. Even then, common exclusions apply: fraudulent acts by senior management (directors/officers) are usually not covered. In practice, crime coverage provides an extra layer against theft or fraud, but it often excludes anything intentional at the top levels.
• Crypto Custody / Specie Insurance: Specialized policies for digital assets (sometimes called “specie” or “crypto-asset insurance”) protect against loss or theft of the actual cryptocurrency held by the firm. These can cover losses from hacking of wallets, theft of private keys, or physical loss of cold storage devices. For instance, Lloyd’s syndicates now offer policies insuring hot wallets (with fluctuating limits tied to crypto prices) and large cold storage vaults. Coverage terms may require certain security protocols (multi-sig, audit trails, etc). This insurance is vital for any business actually holding client crypto, as neither D&O nor cyber insurance will replace lost crypto.
• Tech E&O / Professional Liability: Covers negligence or errors in providing professional or technology services. For crypto businesses, this might include bugs in trading algorithms, incorrect execution of smart contracts, or flawed code deployments. For example, if a DeFi protocol unexpectedly fails and investors lose funds, a Tech E&O policy might respond (if the firm is a software vendor to clients, or if an exchange’s tech fails to perform as advertised). However, these policies typically exclude investment losses, so their scope in crypto can be limited to narrow “service errors.”
• Commercial General Liability (CGL): Usually not a primary concern, since it covers bodily injury or property damage to third parties. Most crypto losses are financial. However, CGL might be relevant if, say, a trading terminal malfunctions causing physical injury, or data breach affects third-party privacy rights (though many companies use cyber insurance for data/privacy events).
• Employment Practices (EPLI) and Other: Employment claims (discrimination, harassment, wrongful termination) can affect any company, including crypto firms. Such claims are generally handled by EPLI. If an executive sues the company after being terminated for raising AML concerns, that could be EPLI (or potentially D&O if it’s alleged as retaliation by directors). It is important to have EPLI for employment-related exposures so that the D&O policy can focus on management liability.

In practice, a crypto company’s insurance program might look like this: a layered policy with primary and excess liability (D&O/Mgmt Liability), an add-on cyber policy with broad limits, a crime policy endorsed for crypto, and a stand-alone crypto custody policy for asset risks. Brokers may package coverage under umbrella policies or specialized “digital asset insurance” programs, but ultimately different claims go to different policies.

D&O vs Cyber vs Crime vs Custody vs Tech E&O (Comparison Table)

Table: Each insurance line addresses different risks. For instance, if an exchange hacker steals Bitcoin, the company would rely on its crypto custody or cyber policy to cover the asset loss and breach response, while D&O insurance would only respond if claimants allege director negligence (e.g. failing to secure hot wallets). By contrast, a regulatory fine or shareholder suit over a misrepresented token listing would involve D&O, not cyber or crime cover.

Key Policy Terms & Exclusions 

Insurance wordings vary greatly. Crypto firms and their brokers must scrutinize several clauses:

• Insured Persons / Entities: Ensure all relevant parties are covered. This includes founders, independent directors, subsidiaries (including foreign affiliates), and potentially DAO participants if structured as officers. Check whether the policy covers acting directors (agreed indemnification) and heirs or legal reps of deceased directors. For example, if a key blockchain developer is formally on a subsidiary’s board, confirm that entity is an “Insured Entity” and that board member is an “Insured Person.”
• Wrongful Act & Securities Claim: A typical D&O “Wrongful Act” covers errors, omissions, breach of duty etc. Important in crypto: does it include crypto-specific actions (like token issuance decisions)? Policies often differentiate between private-company claims and public-company Securities Claims. For public firms, only securities law claims count as “Securities Claims” (Side C coverage), usually excluding general third-party lawsuits. If a crypto project issues tokens, clarify if those tokens are treated as “securities.” Many policies also require a claim to allege a violation of securities law to be covered under Side C.
• Regulatory Investigation: Many crypto claims start with a regulator query. Check how the policy defines an “Investigation.” Some require a formal order, subpoena or legal process before coverage applies. Others may grant limited reimbursement for voluntarily cooperating. D&O will generally cover investigation defense costs if the individual is identified by regulators and it’s covered under Side A or B. However, watch for carve-outs: e.g., some policies only cover investigations of individuals, not ones targeting the company as a whole.
• Professional Services Exclusion: Since crypto companies provide technical/financial services to clients, a broad “professional services” exclusion could be triggered. Confirm whether this excludes claims against directors or only excludes coverage for claims against the company/entity. Ideally, this exclusion should not bar coverage for directors accused of management lapses; it should only bar claims that are really technology errors not involving management decisions.
• Conduct / Fraud Exclusion: Virtually all D&O policies exclude dishonest or criminal acts by insureds. However, the usual trigger is final adjudication. That means a CEO under investigation is still defended until proven guilty. Confirm that language requires a judgment or final finding before voiding coverage. Also ensure there is a Severability provision: innocent directors shouldn’t lose coverage due to one rogue colleague.
• Prior Knowledge / Prior Acts: D&O is claims-made, so it covers only claims first made and reported during the policy period and based on acts after the retroactive date. Disclose any ongoing regulatory inquiries or known “facts and circumstances” to avoid coverage gaps.
• Territory and Jurisdiction: Verify that claims anywhere the company operates are covered. For crypto firms, this often means global reach. If the policy says “United States Only,” a claim by a European regulator could be excluded. Many D&O policies are “Worldwide,” but sometimes with sub-limits for the US or exclusions for claims in certain jurisdictions (e.g., EU GDPR fines may or may not be covered).
• United States Claims: Some policies impose sub-limits or carve-outs for US securities claims (common in global policies). Given the aggressive US enforcement of crypto rules, ensure that US-based claims have adequate limit.
• Prior and Pending: If founders have been involved in previous crypto ventures, any prior claims or insolvencies must have been disclosed or fall outside the policy’s inception.
• Run-Off (Tail Coverage): If a crypto company is sold, merges or discontinues operations, D&O coverage can end unless a run-off or tail is purchased. Because many crypto deals (IPOs, M&A) happen, maintaining continuous coverage post-transaction is crucial. Lapses can leave huge blind spots, especially given crypto’s volatility and delay in litigation.
• Change in Control: Many policies terminate or reduce coverage on a sale/merger. Negotiating an extended reporting period is vital when fundraising or exit events are planned.
• Side A Non-Rescindable: Insist on a non-rescindable Side A (covers only individuals, not reimbursing the company) or a Side A Difference-in-Conditions policy to protect directors in a worst-case insolvency where the company can’t indemnify them.
• Digital Asset / Crypto Exclusions: Some insurers add explicit crypto exclusions, e.g., “loss of digital assets” or “unauthorized transfer of virtual currency.” Carefully review these. An overly broad “digital asset” exclusion could gut coverage for many crypto-related claims. Instead, try to clarify that D&O covers management liability even for digital asset-related allegations.
• Cyber or Technology Exclusions: Occasionally, D&O policies exclude claims arising from a cyber event or tech failure. Ensure that doesn’t inadvertently bar an oversight claim after a hack.
• Non-Standard Exclusions: Watch out for sanctions, investment program exclusions, or Major Shareholder exclusions. The latter can bar coverage for claims by a controlling owner if the crypto venture is founder-owned.

Overall, the policy wording should be tailored. For example, after FTX, underwriters may add “crypto clauses” that tighten conditions. Working with a specialist broker to negotiate wordings is essential.

Underwriting Factors 

When a crypto/Web3 firm seeks insurance, underwriters will probe its risk controls and business profile intensely. Factors include:

Claim Scenarios (Illustrative Table)

Table: Potential claims highlight how crypto incidents can span multiple fronts. For example, a hack (right) leads to a crime/cyber claim for the stolen assets, while at the same time D&O might be triggered by customers or regulators claiming management oversight failures. Each scenario is “subject to policy wording and applicable law.”

Professional Checklist for Crypto Executives

Leaders should proactively prepare for insurance and risk management. Key items to review and document:

• Business Activities and Services: Ensure all crypto-related activities (exchanges, custody, DeFi services, token issuance, NFT marketplace operations, etc.) are clearly defined in underwriting submissions. Undisclosed activities can void coverage.
• Licensing and Regulation: Maintain and disclose current licenses (MSB, exchange licenses, SEC/CFTC registrations, etc.) for each jurisdiction. Note any pending applications or exemptions.
• Jurisdiction Map: List countries and states where you operate, serve customers or have servers. Confirm where customers are located. Verify compliance with local crypto laws.
• Corporate and Entity Structure: Provide an organization chart showing parent, subsidiaries, and affiliates. Identify which entities have licenses and which conduct trading or custody. Ensure all entities needing coverage are named in the policy.
• Board and Officers: List all directors and officers (including de facto decision-makers). Consider independent board members or crypto-native advisors. Confirm that executives in various jurisdictions (e.g., local country directors) are covered as Insured Persons.
• Custody and Asset Segregation: Document how customer assets are held vs. company assets. Show wallet segregation, multi-sig controls, use of third-party custodians (banks or crypto custodians), and any “hot wallet insurance” or collateral.
• AML/CFT and Compliance Controls: Prepare descriptions of KYC processes, transaction monitoring systems, sanction lists, and any independent audits. Note any compliance incidents and resolutions.
• Cybersecurity Measures: Detail network security, penetration tests, intrusion detection, multi-factor authentication, and incident response plans. Provide dates of last audits or certifications.
• Professional Engagements: If your firm provides advisory or code audits (e.g. smart contract review) to others, consider whether Professional Liability coverage is needed. Also, coordinate with your auditors/accountants regarding audit opinions and proof-of-reserves.
• Claims and Incidents History: List prior losses, hacks, or regulatory inquiries (even if not insured claims). Have documentation ready.
• Upcoming Events: Flag any near-term change-of-control events (M&A, IPO) which may require extended reporting periods. Also note planned fundraising, new licenses, or technology rollouts.
• Insurance Coordination: Prepare a schedule of existing insurance policies (D&O, Cyber, Crime, any crypto-specific). Assess gaps (e.g. are private keys insured? Are management actions fully covered?).
• Continuity of Coverage: Ensure retroactive dates align with company formation or last tails. Plan for tail coverage if the company winds down or restructures.
• Subsidiary Activities: If any related company (e.g. fintech arm, payment processor) has crypto exposure, consider cross-class coverage.
• Caps, Deductibles & Limits: Based on your capital structure and assets, decide on desired limits and possible self-insured retentions. Be prepared to justify these to insurers.

Advisory: It’s critical to fully “tell your story” to insurers with written applications. The more transparent you are about operations and controls, the more likely an insurer can price the risk accurately. Underwriters often prefer firms with robust control environments – indeed, coverage is generally reserved for companies showing “strong governance, transparency and operational controls”.

Frequently Asked Questions

What is D&O Insurance for a crypto company?

D&O (Directors & Officers) insurance protects the personal assets of a crypto firm’s directors and officers if they are sued for alleged management mistakes. It covers legal defense costs and judgments (up to policy limits) arising from claims like mismanagement, breach of fiduciary duty or false statements. For example, if an exchange CEO is sued by investors after a sudden platform collapse, D&O would fund the defense and any settlement. It does NOT directly reimburse lost crypto or cover operational losses; those are handled by cyber, custody or crime policies. D&O focuses on management liability.

Does D&O insurance cover regulatory investigations?

Possibly, depending on policy wording. Many D&O policies include coverage for defense costs of insured individuals in formal regulatory investigations or subpoenas. For instance, a CEO called to testify before the SEC might have legal fees covered. However, coverage often only applies to official inquiries involving named insureds, and some policies restrict investigation coverage (e.g. only after a formal order is issued). Regulators’ fines or penalties themselves are typically not covered.

Does D&O insurance pay for stolen cryptocurrency?

No. D&O covers legal claims against management, not the underlying asset losses. Stolen crypto is a financial loss, which D&O does not reimburse. Instead, firms rely on Crypto Custody insurance or Crime insurance to cover stolen assets. D&O would only be relevant if, say, customers sued directors claiming the theft resulted from their negligence. In that scenario, D&O could cover the defense of management, but it still wouldn’t replace the stolen coins.

Can customers sue my exchange’s directors personally?

Yes, in certain cases. If customers allege that directors made false representations or breached duties, they might name them in lawsuits. For example, if a platform touted a reserve backing that wasn’t real, a customer might sue the CEO for fraud. D&O insurance then responds on behalf of those directors (if the acts occurred in their corporate roles). Notably, D&O usually covers suits against individuals acting in their official capacity. However, coverage depends on whether the claim qualifies under the policy’s definitions (e.g. a Securities Claim, if applicable).

Does D&O cover claims after the company goes bankrupt?

Often yes, especially for individual directors. In a bankruptcy, creditors or a trustee may sue former directors. Most D&O/Management Liability policies (Side A) can still cover individual officers even if the company is insolvent. A good policy will have a non-cancelable Side A coverage so that it protects executives when the company can’t indemnify them. Keep in mind, however, that insolvency-related claims might trigger policy exclusions (see insolvency/insured-versus-insured exclusions) – this varies by policy.

What affects the price of D&O insurance for a crypto company?

Underwriters consider many factors. Larger or international crypto businesses usually pay higher premiums due to complexity and risk. Key drivers include: regulatory landscape and licenses (operating in the US/EU increases scrutiny), strength of governance and compliance programs, asset exposure (custody of crypto), security controls, financial condition, claims history, and even market volatility. For instance, a well-capitalized exchange with strong AML controls might secure better rates than a smaller startup. Limited loss data means insurers price in uncertainty, which can raise premiums for bold ventures.

Is a standard D&O policy enough for a crypto exchange?

Usually not. Crypto platforms have unique exposures that standard tech or fintech D&O policies may not fully address. For example, policies might exclude cryptocurrency assets or require securities law triggers not suited to tokens. Insurers often add crypto-specific endorsements or exclusions. Therefore, exchanges should work with brokers to tailor D&O wording for digital assets. Typically, a standard policy should be supplemented by cyber, crime/custody and tech-E&O policies to cover the full risk spectrum.

What other policies do crypto companies need besides D&O?

In addition to D&O, most crypto firms need a suite of lines: Cyber Liability for hacks and data incidents, Crime/Custody for theft of crypto assets, Technology E&O for software or trading errors, and sometimes Professional Liability for advisory services. For example, if hackers steal digital tokens from your hot wallet, you’d turn to your Crypto Custody or Crime policy, not D&O. If your trading engine crashes, Cyber or Tech E&O may cover losses. D&O covers the managers’ liability layer, so it’s one piece of a coordinated program.