City faces rising insurance costs amid cybersecurity concerns

During a recent government meeting, officials discussed the renewal rates for property liability and cybersecurity insurance for the fiscal year 2024-2025. The Texas Municipal League (TML) provided the only proposal for commercial insurance, which was awarded for the previous fiscal year with an option to renew. Notably, TML has established a new cyber fund effective October 2024, reflecting the rising risks associated with cyber claims. This year, the coverage for property and liability will be separated from cybersecurity, requiring members to opt in or out of the new cyber coverage.

The proposed renewal premium for property and liability insurance is set at $853,375, marking an increase of approximately $56,000 from the previous year. This rise is attributed to the addition of two new buildings—the fire station and the police station—while the old police station remains insured until its sale. Additionally, the meeting highlighted two total loss claims affecting auto physical damage coverage.

Officials reviewed the renewal rates, noting increases in various categories, including auto liability and physical damage. The property renewal is projected at $396,471, with most tiers experiencing increases. The discussion also touched on the potential for market exploration in future renewals, particularly if claims ratios remain low.

Cybersecurity insurance renewal rates have seen a significant jump, with the core plus plan rising to $1,875 from $483 last year. The meeting concluded with plans to reconvene for further discussions and approvals by the second meeting in September, ensuring adequate time for employee education on any changes before the October 1 effective date.