In the US, many companies are increasingly insuring themselves against cyber attacks, following a spate of attacks on various company websites, government institutions etc. According to reports the demand for insurance against cyber attacks has increased exponentially and it is reported that some companies have insured themselves up to $ 200 million.

In the recent past, there have been cyber security breaches of major companies such as Lockheed Martin, Sony, Citibank etc.

The attack on Sony’s systems resulted in loss of personal information of over 100 million users accounts, forcing Sony to shut down its popular online gaming network for over a month. Sony estimated that the attacks could cost $172 million in administrative fees, security upgrades, compensation costs, as well as legal fees.