Here’s a good article from the Insurance Information Institute on identity theft insurance. It was mentioned on the NBC Today show this morning.
A number of companies (besides Lifelock through AOL membership) offer it; my experience is that it costs about $30 a month.
The article suggests that victims of identity theft often have lower credit scores and sometimes lose employment. In the distant past, it was sometime common for some employers to hold associates “absolutely accountable” for their own reputations for security purposes.
One of the best defenses to your bank accounts is simply to check them regularly online, not from emails but from going directly to the sites. Make sure you spell the URL’s right.
Identity theft insurance is often offered as a rider on property (homeowner's insurance) as it is on mine. It may be part of umbrella coverage. It is not the same, however, as coverage for online liability incidents, which I don't think can reliably be underwritten with ordinary property insurance.