SUBJECT
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Approve Cyber Risk and Network Security Liability annual insurance policy renewal effective October 1, 2024, through September 30, 2025. ($145,000 annual expense)
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DESCRIPTION
The Cyber Risk insurance policy covers the BoCC and all Constitutional offices, is currently written with AIG, and expires on September 30, 2024. AIG has an A.M. Best Rating of A XV rating them as an excellent company regarding financial stability. The expiring Cyber Risk insurance policy costs $115,000.
The Risk Management and Information Technology Divisions as well as the separate IT departments from each Constitutional Office have worked together, along with County insurance broker Brown and Brown, to market the insurance coverage to worldwide Cyber insurers. The renewal quote is $115,000 for equivalent terms and conditions, representing no change in the expiring premium cost.
The insurance broker has also secured an option to significantly reduce the retention level (deductible) from the current $750,000 per occurrence retention to $100,000 per occurrence retention, for the total premium amount of $145,000. Risk Management recommends this option. All other terms and conditions would remain the same as expiring.
RECOMMENDATION
Request Board approval for the Risk Management Director to bind coverage with AIG for Cyber Risk insurance for the total annual premium of $145,000.
FISCAL IMPACT
Funds are available in the Risk Management General Fund Budget.
CONTACT INFORMATION
Mark Thomas
Director, Risk Management
863-534-5265