Broken Arrow City Council
Meeting of: December 17, 2024
Title:
title
Approval of and authorization to execute a Cyber Policy with Travelers Casualty and Surety Company of America to be effective January 1, 2025
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Background:
To protect the City from liability and disruption from a cyber-attack, the City desires to renew a CyberRisk insurance policy from Travelers Casualty and Surety Company of America. Travelers Casualty has provided the City’s cyber policy coverage since January 1, 2020. The current policy held through Travelers for calendar year 2024 was $67,077.00; the renewal for calendar year 2025 came in just below the 2024 policy amount at $66,798.00.
To ensure diligence of provides services and premiums, quotes were also requested from the market and a bid was received from Resilience Cyber Insurance Solutions. No other quotes were received as it has become increasingly difficult over the years to find Cyber policy offerings for municipalities due to the number of losses around the country.
A thorough review was made of both quotes received. Both quotes were similar in regard to coverage levels, though Resilience did come in at a less expensive cost ($57,208). Resilience did submit additional requirements which would need to be met prior to policy issuance, which included an onboarding exercise (audit). Additionally, Resilience specified that no “end of life” software/hardware can be used organizationally; we do currently utilize a legacy system which may be considered end-of-life, even though we have mitigated any risk while continuing to utilize the program. Additionally, it may be possible that, depending on their interpretation of end of life, that we would also need to move from a 4-year life span on computers to a 3-year life span on computers which would have a additional budgetary impact of approximately $75,000 annually.
Staff recommends approval of the renewed CyberRisk policy with Travelers Casualty and Surety Company of America to be effective January 1, 2025. With a policy renewal from Travelers, we benefit from holding their policy for the last several years and they have a seamless policy renewal for the City of Broken Arrow.
The CyberRisk Policy aggregate limit is $3,000,000 with a $25,000 deductible. Travelers Casualty and Surety Company of America is a subsidiary of The Travelers Companies, Inc., and has earned high ratings for financial strength and claims-paying ability from independent rating services, including a current A.M. Best rating of A++. Founded in 1853, The Travelers Companies, Inc. is a Fortune 500 company, a component of the Dow Jones Industrial Average, and a leading provider of property casualty insurance for businesses.
Cost: $66,798.00
Funding Source: General Government Insurance Fund and BAMA
Requested By: Kelly Cox, Human Resources Director
Approved By: City Manager’s Office
Attachments: Travelers Renewal Quote-CyberRisk
Recommendation:
recommend
Approve and authorize execution of a Cyber Policy with Travelers Casualty and Surety Company of America to be effective January 1, 2025
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