Lloyd’s has introduced a policy to protect against losses from the theft of cryptocurrency from online wallets.

The policy, with flexible limits from £1000 ($1966), has been created by the Atrium syndicate in conjunction with Coincover. The policy is backed by a panel of other insurers, including TML and Markel, which are members of the Lloyd’s Product Innovation Facility.

“As more money flows into the crypto asset market, losses from hacks are on the rise,” Lloyd’s Head of Innovation Trevor Maynard said.

“Nevertheless, cryptocurrency companies have found ways to protect their digital assets from theft and, by working closely with Lloyd’s underwriters, to insure losses that do slip through the net.”

The policy limit increases or decreases in line with the price changes of crypto assets so the insured is indemnified for the underlying value of the asset even if this fluctuates over the policy period.

Coincover CEO David Janczewski says the policy addresses protection concerns that have been a barrier as a new wave of “crypto-curious” customers becomes tempted to jump into the market.

“It represents another step forward in enabling cryptocurrency adoption,” he said.