As cyber attacks multiply, so do insurance policies that cover damages

In the wake of high-profile security breaches that have affected major companies and universities, a growing number of firms are pushing a relatively new product for businesses: cyber security insurance.

American International Group Inc. is the latest big name to  introduce a new offering. AIG this week announced it has started offering cyber security insurance to cover property damage and bodily injury.

“More insurance companies are jumping on that bandwagon and starting to offer cyber insurance,” Zuly Gonzalez, CEO of Baltimore-based cyber firm Light Point Security said.

The question for businesses is whether such policies are worth the money.