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 due to operational interruptions caused by physical damage to equipment or facilities.
Bitcoin mining companies have faced several challenges in recent months, including block reward halving and price limitations due to sell-off pressures and various geopolitical factors. These challenges may be exacerbated by loss of production due to machine wear or power-related downtime issues.
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.