Legislative committee hears that cyber insurance is available but costly and administratively demanding for Oregon schools and special districts

The Joint Legislative Committee on Information Management and Technology on March 30 heard that cyber insurance is more available than it was in 2023, but higher costs and stringent underwriting requirements mean many small special districts and school districts remain underinsured and struggle to meet coverage prerequisites.

Frank Stratton, executive director of the Special Districts Association of Oregon, told the committee that most special districts buy basic coverage through the Special Districts Insurance Services (SDIS) trust but that limits are low: “$50,000 first party and a hundred thousand dollars third party,” he said, adding that roughly 95% of members take that minimal option because they cannot meet underwriting benchmarks or prefer the low-cost pooled option. Stratton said larger entities sometimes purchase excess coverage in the private market.

Why it matters: Local governments and schools hold sensitive personal data and provide essential services. Witnesses said better cyber hygiene reduces both risk and insurance costs, and that a centralized effort to assess and assist local entities could be more effective than simply researching market availability.

Speakers from school and local-government insurance pools described recent market and underwriting…