Commissioner moves to approve Rutherford County property and casualty insurance; committee asks budget staff to study $78,000 cybersecurity premium

Rutherford County’s budget and purchasing committee approved a countywide property and casualty insurance package and asked the budget and purchasing committee to study whether a roughly $78,000 cybersecurity premium should instead be applied to in-house cybersecurity resources.

Ed Elam, presenting the bids for insurance and risk management, said the county’s total insured values rose from about $2.665 billion to $2.92 billion and that the recommended quote from Old Republic reduced the county’s premium. “This year, the the quote is $5,197,238 and that is a savings of $366,517,” Elam said during his presentation.

The committee reviewed bid details, including changes in limits, increased vehicle and contents values and a higher deductible for one vendor’s auto physical damage coverage. Elam said the bids produced a net premium reduction of about 8% compared with last year despite the higher total insured values, and he noted the county checked Old Republic with the third-party administrator and found the carrier “a really, really good company and good to work with.”

Committee members pressed staff on environmental coverage and exclusions. A commissioner asked whether landfill, transfer-station leachate and other environmental liabilities were included; committee discussion clarified that certain landfill and forensic-center exposures, above-ground fuel-storage tanks, paint booths and vehicle maintenance facilities are among exposures reviewed and that specific exclusions remain in some bids.

Committee discussion centered on the cybersecurity insurance line, which a committee member said might be better used to buy additional cybersecurity tools in the county’s IT department. The chair echoed that using an insurance policy can shift adjudication of an incident to insurer attorneys. “There is an increase of about $28,000, I believe… or that $78,000 that we’re gonna pay in premium for cybersecurity might be better spent in actually investing more in cybersecurity tools within the OIT department,” the chair said.

A commissioner moved to approve the insurance package “as presented, but with a recommendation that the budget committee evaluate the benefit analysis of the cybersecurity insurance” and to let budget and purchasing study whether the $78,000 is necessary or better spent in OIT’s budget; another commissioner seconded the motion. The committee took a roll-call vote and the motion carried with all present commissioners voting yes.

The committee’s approval forwards the recommended insurance package into the budget and purchasing workflow; the separate evaluation called for will be handled by the budget and purchasing committee and the full county commission as appropriate. The committee adjourned after completing the item.