HomeMy WebLinkAboutItem 05 - Cyber Liability InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: OCTOBER 5, 2021
SUBJECT: APPROVAL TO RENEW AN ANNUAL POLICY FOR CYBER LIABILITY
INSURANCE COVERAGE
RECOMMENDATION: City Council to consider the renewal of an annual policy for Cyber Liability
insurance coverage with XL Insurance Company.
FUNDING SOURCE: Funds are available in the General Fund (Insurance) for an estimated
annual amount of $140,000.
BACKGROUND: The City's insurance consultant, Hub International Insurance Services
(HUB), solicited multiple vendors for Cyber Security Insurance, and XL
Insurance was the only provider that submitted a written quote. XL
Insurance is the current cyber insurance provider.
The cyber insurance market has significantly changed in recent years due
to an increase in frequency and severity of cyber attacks. As a result,
underwriters are becoming less likely to bid on new business.
Consequently, XL Insurance was the only provider that responded to
HUB's solicitation.
City staff reviewed the proposal from XL Insurance Company and
recommend the coverage. This is a one-year policy.
Staff recommends approval.
GJ