A crypto business is investigated by an Australian regulator following alleged compliance breaches. The business incurs significant legal and professional costs responding to information requests and interviews.

Investigation Costs is a benefit commonly included under Professional Indemnity Insurance. It may respond to legal and professional costs incurred in responding to a regulatory investigation. Regulatory fines and penalties are commonly not insurable in Australia.

A business managing digital wallets for clients experiences a system compromise that results in the loss of crypto assets under its control. Clients allege failure to maintain adequate security measures.

Claims arising from security failures involving digital asset platforms may be covered under Cyber and Technology Liability where the insured is legally liable, however cover for the value of lost digital assets may be limited

A crypto platform suffers a cyber attack that allows unauthorised access to customer accounts. Client data is exposed and transactions are disrupted, leading affected users to pursue claims for loss and response costs.

Claims arising from unauthorised access to customer accounts and related data breaches may be covered under Cyber and Privacy Liability, including response and liability costs

A blockchain developer deploys a smart contract containing a coding error that causes transaction failures and financial loss for a client. The client alleges negligence and seeks compensation for losses and related legal costs.

Claims arising from errors or failures in software or smart contract code may be covered under Information Technology Liability Insurance where the insured is legally liable.