Digital assets and decentralized finance (DeFi) are reshaping global finance, necessitating strong legal and regulatory frameworks. However, traditional insurance has lagged, leaving innovative companies vulnerable. Management liability insurance is crucial for attracting investment, yet many firms struggle to obtain suitable coverage that addresses the unique risks of digital assets. Existing policies often contain loopholes, exclude critical protections, and fail to adapt to rapid technological change. Regulatory shifts pose additional challenges, as guidance can lead to litigation when agencies change direction. Tailored insurance policies are needed to mitigate these risks and ensure coverage aligns with the evolving landscape. As the digital asset economy matures, the capacity for tailored insurance is expected to grow, albeit currently limited compared to traditional finance. Companies must invest in custom policies to secure the best possible outcomes in the event of a claim.

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