In addition to the City’s internal methods of data breach prevention, Network Security and Privacy Insurance coverage would further protect the City from information privacy and network security breaches by providing coverage for Privacy Liability, Network Security, and Media Liability and Regulatory action. The City’s current coverage is written by Cowbell Cyber, with a policy premium of $114,393, for a $1,000,000 limit with a self-insurance retention of $100,000. The City’s broker was able to secure several options for renewal. Option 1: Offers an additional defense coverage, $1,000,000 in Business Interruption coverage, includes $1,000,000 Bricking coverage which covers the costs to replace computer system that is permanently impacted by malware, and coverage is effective in 10-12 hours for a premium of $180,550 for an 18-month policy period. Option 2: Offers an additional defense coverage, coverage which is effective in 10-12 hours and includes $1,000,000 Bricking for a premium of $161,733 for an 18-month policy period. Option 3: Offers an additional $1,000,000 aggregate, increased defense coverage, $2,000,000 in Business Interruption coverage, as well as enhanced coverages for cyber incident response, voluntary shutdown, digital asset destruction data retrieval and system restoration and reputational harm. This option also includes abbreviated waiting period and Bricking coverage for a premium of $235,129 for an 18-month policy period. Option 4: Offers an additional $1,000,000 aggregate, increased defense coverage, third party liability, voluntary shutdown, digital asset destruction data retrieval and system restoration, and reputational harm. This option also includes an abbreviated waiting period and Bricking coverage for a premium of $208,044 for an 18-month policy period. Staff recommends Option 3 with the additional $1,000,000 aggregate, increased defense coverage, $2,000,000 in Business Interruption coverage, as well as enhanced coverages for cyber incident response, voluntary shutdown, digital asset destruction data retrieval and system restoration, reputational harm. This option also includes an abbreviated waiting period and Bricking coverage for a premium of $235,129 for an 18-month policy period. Carriers bind insurance coverage October 1, 2022, after notification of City Council approval. Insurance policies are issued after premiums are received from the City. The policy for the insurance coverage is approved by the Texas Department of Insurance as to content. Current insurance policies are available in Risk Management. |