Lloyds isn't getting involved unless they have an incredibly high degree of satisifaction in security processes, in fact they stripped Elliptic of their first ever "vault" insurance shortly after awarding claiming they didn't like the "publicity".
I'm not sure where you got this impression but it's very wrong. Coinbase does hold insurance but it does _not_ apply to the scenario described in this Forbes article where individual user's security is compromised.
This Coinbase support article[0] succinctly describes what they are insured against. Important points are that only about 2% of their total Bitcoin deposits are insured, those that they keep "online". The insurance does _not_ apply to losses suffered due to an individual's account being compromised.
If you use coinbase, you don't own your bitcoins. Coinbase does, and they pinkie promise to give them back when you ask.
Get a mobile wallet like Mycelium. It's very simple, and you back up your wallet forever with a short string of words. You also retain control of your private keys.
Coinbase unilaterally decided to hold my coins hostage until I submitted a bunch of ID papers to them. This is for coins already in my wallet, not about buying more or selling them and getting cash to my bank account.
I already had 2FA - they force it IIRC. They also refused to delete any of my documents. It was related to connecting with my bank account. (Which they removed, as my Canadian passport somehow means I am not allowed to use banks in the US as a permanent resident.)
http://www.coindesk.com/facebooks-ben-davenport-leaves-bitco...
Lloyds isn't getting involved unless they have an incredibly high degree of satisifaction in security processes, in fact they stripped Elliptic of their first ever "vault" insurance shortly after awarding claiming they didn't like the "publicity".
http://www.coindesk.com/lloyds-back-bitcoin-insurance-deal-e...