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Excess Cover

Crypto-native cover providers and other providers can protect their underwriting capital against the underlying risks they offer coverage for.

Risks covered​

Crypto-native cover providers and other providers underwrite coverage for various risks, which can result in claim payouts that reduce their underwriting capital.

Excess Cover allows other cover providers to shift a portion of their risk exposure onto the mutual.

This is a bespoke product that can be created for individual cover providers.

Sherlock Excess Cover wording​

Currently, Nexus Mutual provides Sherlock, auditing and smart contract coverage protocol, with Excess Cover (a.k.a., Sherlock Quota Share Cover). For more information, read the full terms and conditions of Nexus Mutual’s Sherlock Excess Cover.

Nexus Mutual’s claims assessors use this cover wording as a reference when considering any claim.

Proof of loss​

When Excess Cover is purchased, an organization would include a list of the risks they offer protection for along with the agreed upon underlying cover amount.

If a claim is filed, the covered organization would provide evidence that claims have been paid. This can be on-chain or off-chain proof of loss, depending on which organization holds active Excess Cover.

For Sherlock Excess Cover, proof of claim payments would be provided on-chain.

Claims process​

When a covered organization pays out claims for an underlying risk that is included in the Excess Cover wording, they can file a claim in the Nexus Mutual user interface.

Your organization will need to wait 72 hours for the cool-down period to pass. The cool-down period applies for Excess Cover claims.

  1. Your organization will file a claim using evidence of their claim payments for the covered underlying risks.

    • The claim payments must exceed the agreed upon deductible during a 90-day period.
    • For Sherlock Excess Cover, the deductible is $500,000.

  2. Claims assessors will review, discuss, and vote to approve claims where proof of loss shows that your organization has indeed paid out claims for covered underlying risks above the deductible.

    • If the claim is approved, your organization will be able to redeem the payout.
    • If the claim is denied, your organization will be able to file another claim with more supporting evidence.

For a review of the claims assessment process, see the Claims Assessment section.

Excess Cover claim payouts​

Members have paid a total of $1,023,746 to Sherlock, which represented 25% of their claim payment to Euler Finance and Sentiment per the terms of Sherlock Excess Cover.

To review Nexus Mutual's past claims record and individual case studies, you can see the Claims History section.

Excess Cover product development​

Organizations interested in learning more about Excess Cover can fill out this contact form and the business development team will contact you to explore tailored cover options and pricing.