@g78541r36
Can insurance cover more than 90 % of slashing losses?
It is technically possible, but such high coverage would come with prohibitive premiums and strict conditions. A policy covering >90% of the slashed stake would expose the insurer to a near-total loss scenario, mirroring the operator's own risk. To offer this, the insurer would need to:
Charge Extremely High Premiums: The annual premium could easily reach a significant percentage of the staked amount, potentially making the net risk-adjusted return unattractive.
Impose Strict Security Requirements: Mandate the use of specific, audited clients and infrastructure, and require proof of active monitoring.
Exclude Certain Risks: The policy would likely exclude coverage for slashing events stemming from governance decisions, protocol upgrades, or acts of war/regulation.
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