Digital currency services provider Coinbase said that the firm is covered up to $255 million for coins held in its hot wallets, according to a blog post published by the company. However, the San Francisco-based exchange only holds 2% of customers' assets in hot wallets with the remaining 98% being in cold storage with private keys offline. The insurance policy is provided by Lloyd’s registered broker Aon and "sourced from a global group of US and UK insurance companies, including certain Lloyd’s of London syndicates," according to the blog. The company has had insurances since 2013, and it is particularly protected against hacking, insider theft, and fraudulent transfers among others. The insurance is designed to have sufficient crime coverage, and it does not have a First Loss Payee status. According to the blog post, Coinbase believes that the future crypto insurances is per-customer policies, the company "does not believe that assigning first loss payee status on what should be a policy meant to benefit all customers is the right way to get there." The exchange thinks that the owners of cryptocurrencies should be able sign peer to peer agreements with insurance companies and to directly insure their assets stored with trustworthy and other transparent providers.