Township approves $77,357 insurance renewal after questions about cyber limits

South Strabane Township supervisors voted to renew the township’s municipal insurance with Selective Insurance Group for $77,357 for the July 2024–July 2025 policy year after questions from board members about cyber coverage limits.

The renewal covers property, general liability, police professional, public officials, and cyber liability, the township’s insurance broker Paul said during a presentation to the board. Paul said Selective increased the township’s property valuations and added endorsements including computer fraud and electronic funds-transfer coverage.

Board members focused on cyber risk. Paul told the board that the cyber extortion (ransom) coverage on the policy is $20,000 by default and that the township’s electronic-transfer fraud coverage is $100,000. He said the cyber limit could be increased, in some cases to $1 million, and recommended the board and staff review current systems and exposures before electing higher limits.

Supervisor Jordan (staff) and other members asked about how frequently the township uses automatic clearing-house transfers and about internal controls. Paul said the township uses ACH for some recurring vendor payments (examples given: Columbia Gas, Verizon) and described a recent claim scenario in which a modified invoice led to a fraudulent wire; he emphasized that the transfer-coverage endorsement would respond to such incidents up to its limit.

After discussion, a motion to approve the insurance renewal passed on a board vote (motion carried). The board did not direct immediate changes to coverage limits at the meeting but asked staff to review exposures and provide recommendations if higher cyber or transfer limits are appropriate.

The board’s action keeps the township with Selective for a fifth consecutive year and reflects a small premium decrease from the prior year, according to the broker’s presentation.