Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Cyber Insurance topic
No spam. Unsubscribe anytime.
Mobridge council approves $5,199 cyber insurance policy to cover hacks and extortion
Summary
After a presentation from a local insurance broker, the council approved a cyber insurance quote that provides a $750,000 aggregate limit with a $5,000 deductible and multiple sublimits, at an annual premium of $5,199.
The Mobridge City Council approved a cyber insurance policy for the city at its meeting after a presentation from broker Jesse Kona of Bridge Market Insurance Solutions.
Kona told the council the city previously “had no cyber insurance in the past” and described the coverage the broker recommended, saying the quote is for a $750,000 aggregate limit with a $5,000 deductible. “We’ve got a big bucket of $750,000 with a $5,000 deductible,” Kona said, and he described sublimits for forensics, extortion, hardware replacement and voice-over-IP fraud. For the record, Kona said “the total amount for the 750,000, it's $5,199 for the year.”
The broker explained the policy’s practical protections: forensic services to determine how a breach happened, funds to respond to public-records notification obligations, coverage for extortion demands, and a hardware replacement sublimit. Kona gave examples from other public entities, including school districts and utilities, to illustrate the scale of losses cyber incidents can cause. “We will pay for hardware up to a hundred thousand dollars,” he said when describing limits for equipment replacement.
Council members asked clarifying questions about limits and whether the city could buy higher aggregate limits later. Kona said the coverage can be increased in future renewals and that underwriters typically assess records and exposure before pricing a larger limit. Several council members said the annual premium was modest compared with the potential cost of a successful attack, and a motion to approve the quote through insurer Cowbell passed on a roll-call vote.
The policy is written as an aggregate limit with sublimits and a $5,000 deductible; council members asked staff to return if they wanted options with higher aggregate limits in future renewals.
Action: The council voted to approve the quoted cyber insurance policy (aggregate $750,000, $5,000 deductible) at an annual premium of $5,199 (motion and roll call recorded).
