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Davis County staff flag cyber-insurance premium and risk trade-offs in HR budget review
Summary
County HR presented budget variances including recruitment tools, benefits changes and a proposed cyber-insurance buy-up that would add roughly $3 million of cyber limits for about $80,000 a year; commissioners asked for a cost-benefit analysis before finalizing the premium.
Davis County human resources staff reviewed the department’s 2025 budget request on Oct. 3, highlighting recruitment tools, benefit-plan changes and an insurance decision that county leaders said requires more analysis.
Chris Bell, presenting for HR and risk, outlined recent investments such as an ApplicantPro video-interviewing plug-in and moves to Delta Dental. Bell said the county implemented an asynchronous video interviewing tool with ApplicantPro and had shifted the annual subscription onto the standing HR budget.
On benefits, Bell noted recent Utah Retirement Systems (URS) adjustments that made tier 2 contributory for employees and described modest employee contribution increases this year. He also described a conservative approach to PEHP dividend revenue after guidance tied to the medical-loss ratio: “Last year we budgeted $1.70; the actual this year is $2.12,” Bell said (units not specified in the slides).
Risk and insurance drove the most contested discussion. Staff described prior cyber coverage that had been reduced from $4,000,000 to $2,000,000 and reported that a broker obtained a bid to add $3,000,000 of limits—bringing total cyber limits to about $5,000,000—at an annual premium of roughly $80,000. Bell said that line was included in the variance solely for discussion, not as a final decision.
Commissioners and staff debated whether the premium buys improved security or merely transfers financial risk. Commissioner Jeff Hassett questioned whether the $80,000 premium would be better spent on preventive security measures. Bell and other staff noted that some services are provided as part of insurance packages but cautioned that insurance “kicks in if something happens” and does not itself prevent incidents.
Bell also highlighted ongoing vendor relationships: the county uses a broker (GBS) to negotiate with PHP and Delta Dental and plans a future RFP for broker services once contract options end. The presentation included other HR items under consideration for future budgets, such as tuition reimbursement and possible retirement incentives to lower long-term costs.
The commission did not take a formal vote on the cyber premium during the session. Staff said they will return with further cost-benefit analysis and written bids so the board can weigh premium costs against technical security investments and policy language in insurance contracts.
