AIG to Offer Cyber Attack Insurance

by Christopher Freeburn | April 23, 2014 12:51 pm

AIG to Offer Cyber Attack Insurance

With a growing number of businesses reporting cyber attacks, American International Group (AIG[1]) has launched a new type of insurance policy that covers physical damage resulting from hacking incidents[2].

2923680890 fbd6d0e94a AIG to Offer Cyber Attack Insurance[3]
Source: Flickr[4]

The new coverage is marketed as an additional option to existing AIG data security insurance. AIG says the new policy will protect companies from claims arising from personal injuries and property damage caused by cyber attacks. An AIG executive observed that “there are viruses out there that can attack industrial control systems and cause damage.” She added that there are an “endless amount of ways” cyber attacks can be launched to damage property, the Financial Times notes.

While most cyber attacks are designed to steal data, a growing trend toward Internet-connected appliances[5] and infrastructure is raising the possibility of cyber attacks that could result in personal injuries or damaged property.

According to the Financial Times, the new AIG cyber attack insurance is the first physical damage coverage offered by a major insurance provider.

AIG shares rose more than 1% in Wednesday mid-day trading.

More Stocks in the News:

Endnotes:
  1. AIG: http://studio-5.financialcontent.com/investplace/quote?Symbol=AIG
  2. covers physical damage resulting from hacking incidents: http://www.ft.com/intl/cms/s/0/07f85b78-cae5-11e3-9c6a-00144feabdc0.html#axzz2zjBGjIkf
  3. [Image]: http://investorplace.com/wp-content/uploads/2012/03/2923680890_fbd6d0e94a.jpg
  4. Flickr: http://www.flickr.com/photos/barrybar/2923680890/in/photostream/
  5. growing trend toward Internet-connected appliances: http://investorplace.com/2014/01/ces-2014-internet-of-everything/2/#.U1ftbl5hOf0
  6. PG: Procter & Gamble Stock Ticks Lower on Revenue Miss: http://investorplace.com/2014/04/pg-procter-gamble-stock-ticks-lower-revenue-miss/#.U1ft6V5hOf1
  7. HOG: Harley-Davidson Stock Revs Up on Earnings Beat: http://investorplace.com/2014/04/hog-harley-davidson-stock-revs-earnings-beat/#.U1aNm15hOf0
  8. AXP: American Express Stock Slips Despite Earnings Beat: http://investorplace.com/2014/04/axp-american-express-stock-slips-despite-earnings-beat/#.U0_qO15hOf1

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