Resolution - Risk Management: Consider a resolution authorizing and directing the City Manager to purchase for and on behalf of the City of Lubbock, Network Security and Privacy Insurance coverage from Crum & Forster Insurance Company, for which the premium amount shall not exceed $110,500.
Item Summary
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, at an 18-month policy premium of $235,129 for a $1,000,000 limit, with a self-insurance retention of $100,000. It includes coverage for cyber incident response, voluntary shutdown, digital asset destruction data retrieval and system restoration, and reputational harm.
The City's broker was able to secure a renewal with Crum & Forster Insurance Company for an annual premium not to exceed $110,500 a decrease of 29.51% over the expiring premium. This policy offers $100,000 retention and a $2,000,000 aggregate limit. It covers business interruption coverage, cyber liability and incident response, cyber extortion, as well as bricking coverage.
Carriers bind insurance coverage on April 1, 2024, 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.
Fiscal Impact
Funds are budgeted in the FY 2023-24 Risk Management Fund.