Focus Area: Legal and Quality of Life
Staff Contact: Ron Shaver, Chris Grunewald, Mike Sirna, Barrett Baumgartner
Subject: Consideration of purchasing cyber liability insurance policy from Travelers
________________________________________________________________________________
title:
title
Consideration of purchasing cyber liability insurance policy from Travelers.
Body
________________________________________________________________________________
Summary:
The City’s insurance broker, Risk Strategies, was directed to negotiate favorable renewal
terms with the incumbent cyber insurance carrier (Beazley) as well as exploring competitive
options. Three proposals were received by the deadline and were reviewed by Charlesworth Consulting, the City’s risk management consultants, as well as Legal and IT.
Last year, Beazley offered a premium decrease of 23%. The renewal offered by Beazley
includes an additional decrease of 1.3%. However, the alternatives from Axis and Travelers
both included cost savings worth considering. The proactive work by the City’s internal
departments to reduce and minimize the City’s cyber liability risk has played an important role in keeping premiums competitive and increasing options.
All three programs are comparable with the primary difference being the City’s retention
(deductible) per claim. There are three offers at the same current policy limits: Beazley’s
renewal offer is for a $250,000 per claim retention/deductible which is the same our current
Beazley policy; Axis offers $150,000; and Travelers offers $25,000. In addition, Travelers
has offered an option for higher limits at a premium that is 6.7% lower than the City’s current
premium and this option includes a $35,000 per claim retention/deductible.
Staff is recommending selecting cyber liability insurance with Travelers with the higher limits option at a premium of $113,743 which is a reduction from the current premium. The 1-year policy will be effective May 14, 2024.
________________________________________________________________________________
Financial Impact:
Adequate funding to cover the premium is contained in the Risk Management Fund.
________________________________________________________________________________
Action Needed:
Approve the May 14, 2024 to May 14, 2025 cyber insurance premium in the amount of $113,743.
________________________________________________________________________________
Attachment(s):
None.