According to a report by CoinDesk, the Bermuda-registered insurance company Relm Insurance has launched a policy aimed at Bitcoin miners, providing coverage during business interruptions.
According to an announcement released on Thursday, this Bitcoin business interruption insurance is the first policy priced in Bitcoin. The purpose of this policy is to provide financial protection for Bitcoin mining companies, preventing losses caused by operational interruptions due to physical damage to equipment or facilities.
Bitcoin mining companies have faced several challenges in recent months, including block reward halving, price limitations due to selling pressure and various geopolitical factors, which may be exacerbated by loss of capacity due to machine wear or power-related downtime.
Relm holds an Innovative Insurer General Business (IIGB) license issued by the Bermuda Monetary Authority, allowing it to provide compensation to Bitcoin miners equivalent to the value of the coins they mine.