Pondera County approves $2 million cyber liability policy

Pondera County commissioners voted to purchase a $2,000,000 cyber liability insurance policy, approving the premium quoted at $8,964 for the July–June fiscal year and a $5,000 deductible.

The coverage decision followed staff presentations that the county previously held cyber coverage through the Montana Association of Counties (Mako) but that provider no longer offers it. County staff said Lovett, through Shannon Naylor at Travelers Insurance, provided the only viable replacement quotes: $6,518 for $1,000,000 of coverage and $8,964 for $2,000,000 of coverage.

County staff described the risk the policy is intended to cover as including ransomware and other incidents that could “take our information and hold it hostage.” Staff recommended the higher limit. “For the extra million dollars of coverage, it would, in my opinion, be consideration,” a county speaker said during the discussion. After brief discussion about whether a million dollars would be sufficient to restore systems, a commissioner moved to purchase the $2,000,000 plan and another commissioner seconded the motion. Commissioners signaled approval by voice vote and the motion carried.

The approved policy carries a $5,000 deductible. County staff noted prior premium indications for similar coverage had been as high as about $30,000, making the current quotes substantially lower than past estimates. The board recorded the policy as covering the upcoming fiscal year beginning in July.

County staff also noted that the quotes were received recently and that the higher-limit policy, while more expensive, provided broader protection against ransomware and related incidents. No statutory or ordinance references were cited in the discussion.