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Council approves Tokyo Marine HCC cyber-liability coverage with $50,000 retention; limits conditional on VPN completion
Summary
The council approved a contract recommendation to obtain cyber liability insurance through Tokyo Marine HCC with $5 million limits and a $50,000 retention; the insurer will temporarily reduce limits until the city's VPN security is validated.
The Odessa City Council approved a contract recommendation to secure cyber liability insurance from Tokyo Marine HCC, with coverage limits up to $5 million and a retention (deductible) of $50,000.
Yvette, presenting the item, said Tokyo Marine HCC offered up to $5 million across coverage tiers. She told council the policy includes a $50,000 retention and that limits would be temporarily reduced until the city completes and verifies a secure virtual private network (VPN); once the city sends confirmation the VPN is secure, Tokyo Marine will restore full limits within 30 days. The full-year contract is approximately $54,000; the pro-rated remainder of the fiscal year is about $18,000 and staff said the amount was budgeted.
Council discussed coverage details, including whether the terrorism-related coverage would carry a separate deductible and how cyber-extortion and ransomware are addressed. Staff said the policy covers ransomware and cyber-extortion, while some narrow "cybercrime" elements were handled differently; council asked staff to confirm deductible interactions. Staff also said the policy included a standalone terrorism-related policy (TRIA-related) and that pricing included that coverage.
Councilman Thompson moved to approve the recommendation; Councilman Canel seconded. The motion carried.
Staff will complete the VPN security work, provide the insurer the confirmation needed to restore full limits, and finalize contracting.
