An old blog post from 2019 states that they have a policy which covers up to $255 million for their hot wallets.
https://medium.com/the-coinbase-blog/on-insurance-and-cryptocurrency-d6db86ba40bd
This would be enough to cover a hack the size of the WazirX hack from a few months ago. When other major exchanges like Bitfinex and Binance were hacked they have been able to recover eventually. Coinbase is big enough that even if their insurance coverage is not enough they would probably still have enough revenue to make up the losses and customers would eventually be made whole.
https://medium.com/the-coinbase-blog/on-insurance-and-cryptocurrency-d6db86ba40bd
This would be enough to cover a hack the size of the WazirX hack from a few months ago. When other major exchanges like Bitfinex and Binance were hacked they have been able to recover eventually. Coinbase is big enough that even if their insurance coverage is not enough they would probably still have enough revenue to make up the losses and customers would eventually be made whole.
Coinbase has something like $120B in Bitcoin keys. That's like having no coverage at all, basically
.