HomeMy WebLinkAboutResolution - 2018-R0351 - Network Security Privacy Insurance Coverage From Lloyd's Of London - 09/27/2018Resolution No. 2018-RO351
Item No. 6.33
September 27, 2018
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL. OF THE CITY OF LUBBOCK:
THAT the City Manager of the City of Lubbock is hereby authorized and directed
to purchase for and on behalf of the City of Lubbock, Network Security Privacy Insurance
coverage from Certain Underwriters at Lloyd's of London, for which the premium amount
shall not exceed $35,721.00; and
THAT the City Manager may execute any routine documents and forms associated
with said insurance coverage.
Passed by the City Council this September 27, 2018
DANIEL M. POP ', MAYOR
ATTEST:
Reb ca Garza, City Secret
APPRO ED AS "1-0 CONTENT:
Leisa Hutcheson, Director of Human Resources
and Risk Management
APPROVED AS TO FORM:
Jef�efl,Deputy City Attorney
m/RES.Risk Mgm -Certain Underwriters at Lloyd's of London
September 11, 2018
Cyber Liability
Insurance Company: Certain Underwriters at Lloyd's of London
Policy Term: 10/01/2018 to 10/01/2019
Coverage: Cyber Liability insurance protects the organization from losses due to
Notification expenses, Business Interruption expenses, Cyber extortion
or ransom and regulatory fines and penalties to name a few coverage
clauses that address first and third party losses from a cyber attack.
Privacy Liability insurance coverage protects businesses against the
liabilities and expenses arising from a theft, loss of unauthorized use of
personal information (PI), personal health information (PHI) or
corporate confidential (CC) information.
Annual Premium: $35,721.00— Option l Including Taxes &Fees
$49,717.50 — Option 2 Including Taxes & Fees
Coverage Description
Limit Optm. Ir.
Aggregate Policy Limit
5,000,000
Security & Privacy Liability
5,000,000
15,000
Multimedia & Intellectual Property Liability
5,000,000
15,000
Technology Services
N/A
N/A
Miscellaneous Professional Services
N/A
N/A
Network Interruption and Recovery
5,000,000
15,000
8 Hours
Event Support Expenses
5,000,000
15,000
Privacy Regulatory Defense & Penalties
5,000,000
15,000
Network Extortion
5,000,000
15,000
Electronic Theft, Computer Fraud &
Telecommunications Fraud
250,000
15,000
Social Engineering Fraud
250,000
15,000
Reputational Damage
5,000,000
15,000
Notification Expenses •
5,000,000
15,000
PCI Fines
5,000,000
15,000
Dependent Network Interruption & Recovery
250,000
15,000
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Coverage Description,.
Aggregate Policy Limit
10,000,000
Security & Privacy Liability
10,000,000
15,000
Multimedia & Intellectual Property Liability
10,000,000
15,000
Technology Services
N/A
N/A
Miscellaneous Professional Services
N/A
N/A
Network Interruption and Recovery
10,000,000
15,000
8 Hours
Event Support Expenses
10,000,000
15,000
Privacy Regulatory Defense & Penalties
10,000,000
15,000
Network Extortion
10,000,000
15,000
Electronic Theft, Computer Fraud &
Telecommunications Fraud
250,000
15,000
Social Engineering Fraud
250,000
15,000
Reputational Damage
10,000,000
15,000
Notification Expenses•
N/A
N/A
PCI Fines
10,000,000
15,000
Dependent Network Interruption & Recovery
250,000
15,000
Terms are Subject to the Following
Terms and conditions based off Revenue Split by Location
Conditions:
as specified below
• NMA 1256 Nuclear Incident Exclusion (USA)
• NMA 1477 Radioactive Contamination Clause (USA)
• LSW3001 Several Liability Notice (Insurance)
• LSW3000 Premium Payment Clause 45 Days
• Retroactive Date — Full Prior Acts
• Cyber Terrorism Endorsement
• Notice of Terrorism Insurance Coverage LMA9105 Endorsement
• Payment Card Industry Fines and Assessments Endorsement (as specified under Endorsed Coverages)
• Notification Expenses Outside Total Limit of Liability Endorsement (as specified under Endorsed
Coverages)
• Dependent Network Interruption and Recovery Endorsement (as specified under Endorsed Coverages)
• APPA Amendatory Endorsement
Important Considerations
North American Electric Reliability Corporation (NERC) and Federal Energy Regulatory Commission
(FERC) are included as Full Limits
Bitcoin Demand is included in Endorsements of Coverage
Excluded coverage or other coverages sought may be available: please discuss with U51
Other exclusions and policy limitations may apply. Please refer to the actual policies for specific terms,
conditions, limitations, exclusions and sublimits that will govern in the event of a loss.
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This policy offers Insureds free access to a designated password protected risk management portal
powered by CyberScout-, offering a range of services including pro -active privacy educational resources,
24/7 breach management services and a response hotline.
"formerly known as IDT911
Richard Kissel, Kissel Hirsh & Wilmer LLP, 580 White Plains Rd., 5th Floor,
Tarrytown, NY 10591, rkissel@kphwlaw.com, +1(0) 914 750 5933
In respect of:
Privacy Breaches and/or Cyber Extortion Events — CyberScout (formerly IDT911),
Breach Hotline: 1-844-858-9578, breach@cyberscout.com / Mr. Eduard Goodman
Kissel Hirsh & Wilmer LLP, 580 White Plains Rd., 5th Floor, Tarrytown, NY 10591
New York
Worldwide
Worldwide
Privacy Liability - Covers liability arising from failure by the Insured or an Independent Contractor to properly
manage, store, destroy or otherwise control Personal Information, or an unintended violation of the Insured's
privacy policy that results in the violation of any Privacy Regulation
Network Security Liability - Covers liability arising from a failure of Network Security, meaning those activities
performed by the Insured, or by others on behalf of the Insured, to protect against unauthorized access to,
unauthorized use of, a denial of service attack against, or transmission of unauthorized, corrupting or harmful
software code to the Insured's computer system.
Internet/Multi Media Liability - Covers liability arising from the electronic publishing, dissemination, releasing,
gathering, transmission, production, webcasting, or other distribution of Internet Content on the Insured's
website.
Network Extortion - First party coverage. Reimburses for payments made under duress to address an extortion
threat.
Data Breach Expenses - Covers Notification, Monitoring, Call Center Services as required by law, Forensics and
Loss Control, PR & Crisis Communication Services
Regulatory Proceedings- First party coverage. Covers Defense and Penalties related to civil proceeding brought by
FTC, FCC or similar governmental entity
Digital Asset Protection - First Party coverage. Pays costs incurred to replace, restore or re -collect Digital Assets
due to corruption or destruction caused by a Network Security failure.
Business Interruption - First Party coverage. Pays Income Loss and Extra Expense incurred by the Insured during
the Period of Restoration resulting directly from a covered Interruption of service as a direct result of a data
security event.
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