Story County supervisors approve $3,000,000 cyber policy with CFC

The Story County Board of Supervisors voted unanimously June 24 to purchase a $3,000,000 cyber liability policy from CFC for $18,201 and a $5,000 deductible.

County staff introduced the item and insurance advisers laid out options for higher limits after the county implemented multifactor authentication. "Now that MFA is in place for the county, we can look at some higher limits," said Steve Goodhue, an insurance presenter, describing benchmarking the county against similar jurisdictions.

Why it matters: County officials and their advisers said cyber incidents can trigger data restoration, outside consulting, credit monitoring and potential ransom negotiations, and that higher coverage would reduce the chance the county must pay large sums from local funds. Goodhue said smaller limits previously offered by ICAP — $250,000 — "is very low" and does not go far in the event of a cyber incident.

Goodhue and other insurance representatives described quotes from multiple carriers. ICAP and Travelers offered more limited or more expensive options at certain limits, Cowbell supplied competitive quotes, and CFC — a Lloyd's of London–backed carrier — offered the $3,000,000 policy at $18,201 with a $5,000 deductible and with coverage structured on a per-occurrence basis rather than an annual aggregate. Goodhue recommended the CFC quote, saying CFC "can bind it fairly quickly."

Alyssa Wignall, present for county insurance administration, and Susan Hoscher, participating remotely, confirmed that switching some coverage from ICAP to CFC would reduce the county's ICAP premium. Wignall said the county had not budgeted for this new policy and that the CFC option would be "about $13,000 more than we budgeted." Hoscher confirmed the ICAP premium reduction noted by staff.

Formal action and process: A motion to purchase the $3,000,000 CFC policy was made and seconded; Supervisors Basil, Merkin and Heddens voted "aye," and the motion passed. The board discussed that the quotes were for one year and that staff could revisit limits in a future renewal.

Next steps and conditions: Staff noted CFC would require some staff onboarding (including downloading an app) and offered optional training and mock exercises for county personnel. The board directed staff to proceed with the purchase under the terms discussed and to return if further action was needed at renewal.

Acknowledgments: Insurance advisers on the record for the discussion included Steve Goodhue, Alyssa Wignall and Susan Hoscher. County staff presenting budget context and procurement implications included a staff member identified as Lisa.