Bermudian-based Relm Insurance is offering the insurance industry’s first bitcoin denominated insurance product.

The pioneering product offers business interruption coverage specifically tailored for bitcoin miners.

Relm, the specialty insurance carrier, supports emerging and innovative sectors.

The launch of BTC Business Interruption Insurance last week created a product designed for diverse bitcoin mining operations, including publicly traded companies, private enterprises and off-grid miners.

BTC BI addresses the unique risks faced by the bitcoin mining community. It provides robust financial protection against losses from operational interruptions caused by physical damage to property, the company said.

Claire Davey, head of Product Innovation and Emerging Risk at Relm, commented: “With our deep, technical underwriting expertise and relationships in the bitcoin mining community, we are leading the insurance industry in the development of this crucial risk transfer solution.”

Meanwhile, CoinDesk noted: “Bitcoin mining companies have faced headwinds in recent months relating to the block reward for producing new BTC being halved and bitcoin's price being restrained by selling pressure and various geopolitical factors.

“These challenges could then be compounded by losing capacity to the wear and tear of their machines or outages related to power problems.”

Relm said it is one of few insurers to hold the Bermuda Monetary Authority Class IIGB (Innovative Insurer General Business) license with the Bermuda Monetary Authority, enabling the indemnification of bitcoin miners in the same currency they are mining.