--- title: Cryptocurrency & Insurance – The Ever-Grey Area description: Safeguarding your cryptocurrency is crucial, and understanding Bitcoin security is paramount. In cases like Kimmelman v. Wayne Insurance Group, the classification of cryptocurrency as property or money determines insurance coverage. image: https://www.ironcladfamily.com/hubfs/Imported_Blog_Media/Bitcoin-security-2.jpg --- [Skip to content](https://www.ironcladfamily.com/blog/cryptocurrency-insurance-coverage-can-i-rely-on-my-insurance-provider-to-protect-me#main-content) [![Ironclad Family logo](https://www.ironcladfamily.com/hs-fs/hubfs/Ironclad%20Family%20logo.png?width=1162&height=378&name=Ironclad%20Family%20logo.png "Ironclad Family logo")](https://www.ironcladfamily.com/) - [WHY DIGITAL VAULTS](https://www.ironcladfamily.com/blog/tag/digital-family-vaults-estate-planning) - [FINANCIAL PLANNING](https://www.ironcladfamily.com/blog/tag/financial-planning) - [END OF LIFE PLAN](https://www.ironcladfamily.com/blog/tag/end-of-life-planning) - [PREPAREDNESS](https://www.ironcladfamily.com/blog/tag/emergency-planning) - [FOR ADVISORS](https://www.ironcladfamily.com/blog/tag/advisors) ![Cryptocurrency Insurance Coverage](https://www.ironcladfamily.com/hubfs/Imported_Blog_Media/Bitcoin-security-2.jpg) # Cryptocurrency Insurance Coverage – Can I Rely on My Insurance Provider to Protect Me? ![Michael Lester](https://www.ironcladfamily.com/hubfs/photo_2022-11-05_21-23-09.jpg) [Michael Lester September 8, 2020](https://www.ironcladfamily.com/blog/author/michael-lester) - [Advisors](https://www.ironcladfamily.com/blog/tag/advisors) - [Digital Family Vaults & Estate Planning](https://www.ironcladfamily.com/blog/tag/digital-family-vaults-estate-planning) - 2 mins Cryptocurrency and Bitcoin security have always been a delicate matter concerning insurance. With[over 7% of Americans](https://www.statista.com/chart/18345/crypto-currency-adoption/)owning cryptocurrency, the demand for this relatively secure asset is steadily rising. As global interest in cryptocurrency grows, governments are closely scrutinizing the asset. The [Kimmelman v. Wayne Insurance Group](https://www.propertyinsurancecoveragelaw.com/files/2018/10/Kimmelman-1.pdf)case serves as a prime example of the complexities involved in insuring cryptocurrencies. This digital asset has become a topic in numerous financial and legacy planning discussions as individuals increasingly view it as a viable option for their investment portfolios. However, a crucial question arises: can you trust your insurance agents to safeguard you or your family in the event of an unexpected loss of cryptocurrency? The answer lies in cases like Kimmelman v. Wayne Insurance Group, where the classification of cryptocurrency as property or money is pivotal. ## Bitcoin Security and Insurance Agencies In the aforementioned case, Kimmelman sought coverage for his stolen Bitcoin portfolio valued at around $16,000. The insurer's policy stated coverage for "personal property owned or used by an insured anywhere in the world." However, liability was limited to $200 on money, bank notes, gold, silver, and value cards, among other items. The insurance agent's investigators concluded that bitcoin was considered money, warranting compensation limited to $200. Subsequently, a legal dispute ensued, with one side arguing it was money and the other seeking appropriate compensation. The Ohio state court ruled in favor of considering virtual currency, including bitcoin, as property, not money, based on [IRS Notice 2014-21.](https://www.irs.gov/pub/irs-drop/n-14-21.pdf) This notice treated cryptocurrency as property for tax purposes, establishing any loss as a loss of property. ## Cryptocurrency Integration into Legacy Planning The surge of virtual currency began in 2015 and reached its pinnacle in 2017. Despite the currency's fluctuating value, those who invested early have seen substantial gains. Naturally, individuals want to include cryptocurrency in their legacy planning, emphasizing Bitcoin security. IronClad Family provides a secure platform for creating a will and storing information on accessing assets posthumously. Our[vaults offer security](https://www.ironcladfamily.com/digital-vault) and flexibility, enabling you to grant access to trusted individuals, such as family, health executives, and financial advisors. The goal is to ensure a seamless transfer of assets to your family without any posthumous hassles. Let the [IronClad Family](https://www.ironcladfamily.com/) guide you through the details of this process. Reach out to us, and we'll promptly call you back! ![Michael Lester](https://www.ironcladfamily.com/hubfs/photo_2022-11-05_21-23-09.jpg) ### Michael Lester I spent years flying Marine Corps combat missions believing I understood America’s role in the world. Today I work in national security and cybersecurity, helping organizations understand risk, resilience, and the systems we rely on. My writing continues the same mission—bringing clarity to complex issues and inviting people to look past slogans so we can understand who we are, what we do in the world, and why it matters. ## Latest posts - [ALL POSTS](https://www.ironcladfamily.com/blog/all) [![DIY Will Guide: Protect Your Family in 2026](https://getautoseo.com/storage/hero_images/diy-will-guide-protect-your-family-in-2026.jpg?v=91c00a32dfd0)](https://www.ironcladfamily.com/blog/diy-will-guide-protect-your-family-in-2026) Sep 19, 2026, 6:41:12 AM ### [DIY Will Guide: Protect Your Family in 2026](https://www.ironcladfamily.com/blog/diy-will-guide-protect-your-family-in-2026) [![Everplans vs Digital Vault with Zero Knowledge Encryption: Choosing Your Legacy Strategy (2026)](https://getautoseo.com/storage/hero_images/everplans-vs-digital-vault-with-zero-knowledge-encryption-choosing-your-legacy-strategy-2026.jpg?v=89306a12c83d)](https://www.ironcladfamily.com/blog/everplans-vs-digital-vault-with-zero-knowledge-encryption-choosing-your-legacy-strategy-2026) Sep 19, 2026, 6:23:11 AM ### [Everplans vs Digital Vault with Zero Knowledge Encryption: Choosing Your Legacy Strategy (2026)](https://www.ironcladfamily.com/blog/everplans-vs-digital-vault-with-zero-knowledge-encryption-choosing-your-legacy-strategy-2026) --- [![Logo Light](https://www.ironcladfamily.com/hs-fs/hubfs/Logo%20Light.png?width=150&height=49&name=Logo%20Light.png "Logo Light")](https://ironcladfamily.com) **66 W. 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