HomeMy WebLinkAboutItem 16 - Cyber LiabilityMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: SEPTEMBER 20, 2022
SUBJECT: RENEWAL OF 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 (Risk Department) for an
estimated annual amount of $178,000.
BACKGROUND: The City's insurance consultant, HUB International Insurance Services
(HUB), solicited multiple vendors for cyber security insurance and
received written quotes from XL Insurance and Starr Surplus Lines
Insurance Company. 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 and Starr Insurance companies were the only provider
that responded to HUB's solicitation.
City staff reviewed the proposals and recommend the XL Insurance policy
for cyber liability coverage. XL Insurance policy provides higher coverage
limits for cyber protection. This is a one-year policy.
Staff recommends approval.
GJ/RH