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HomeMy WebLinkAboutResolution - 2016-R0331 - Purchase - Illinois National Insurance Co - Network Security Privacy Insurance - 12/27/2016Resolution No.2016-R0331 Item No.6.15 December 27,2016 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 Illinois National Insurance Company,for a premium amount not to exceed $55,657.00;and THAT the City Manager may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this September 22,2016 , DANIEL M.POPE,MAYOR ATTEST: tJL&^t-t, b^ccRebecca Garza,City Secretar APPROVED AS TO CONTENT Leisa Hutcheson,Director of Human Resources and Risk Management APPROVED AS TO FORM: JeffT^artsell,Chief Litigation Attorney sj/RES.Risk Mgmt-Illinois Nat.Ins.Co. September 7,2016 11� Network security and privacy coverage Named insured: City of Lubbock Insurance carrier: Illinois National Insurance Company — Admitted A.M. Best rating: A+ XV as of 2015 Policy number: TBD Policy term: October i, 2o16 to October 1, 2017 Premium: Options = $19,129 for $1M limit/$25Kretention Option 2 = $55,657 for $5M limit/$5oK retention Coverage: Pays for third parry financial losses exceeding the retention which the Insured becomes legally obligated to pay as a result of a claim first made and reported during the policy period arising out of • Privacy liability (arising from theft or disclosure of Personally Identifiable or Corporate Information) • Network security (responds to a privacy/security breach caused by unauthorized access / use of computer systems, transmission of malicious code, denial of service attacks) • Media liability (coverage may be limited to electronic content or content on a website or to address social media exposures) • Regulatory action* (sub -limit may apply) (for violation of a privacy statute or regulation; may also include coverage for regulatory fines and penalties) Coverage may be available for certain first parry expenses that may be incurred as a result of a data breach. Policy form: Claims made and reported Option 1 Limits: $ 1,000,000 Privacy and security liability $ 1,000,000 Event management insurance $ 1,000,000 Media content insurance sublimit $ 1,000,000 Network interruption insurance $ 1,000,000 Regulatory action sublimit of liability $ 1,000,000 Maximum policy aggregate 1,000,000 Cyber extortion insurance 5o,000 Reputation guard — o% Coinsurance Retention: $ 25,000 Each privacy liability claim $ 25,000 Event management insurance $ 25,000 Media content insurance; 12 hour waiting period $ 25,000 Network interruption insurance; 12 hour waiting period $ 25,000 Each regulatory proceeding claim 25,000 Cyber extortion insurance $ o Reputation guard Retroactive date: October 1, 2016 Extended reporting period: t00% of annual premium for 1 year; 175% of annual premium for 2 years; 200% of annual premium for 3 years This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 9/6/2016 Prepared for City Of Lubbock Confidential. © 2016 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 30 Option 2 Limits: $ 5,000,000 Privacy and security liability $ 5,000,000 Event management insurance $ 5,000,000 Media content insurance sublimit $ 5,000,000 Network interruption insurance $ 5,000,000 Regulatory action sublimit of liability $ 5,000,000 Maximum policy aggregate $ 5,000,000 Cyber extortion insurance $ 50,000 Reputation guard Retention: $ 5o,000 Each privacy liability claim $ 50,000 Event management insurance $ 50,000 Media content insurance; 12 hour waiting period $ 50,000 Network interruption insurance; 12 hour waiting period $ 50,000 Each regulatory proceeding claim 50,000 Cyber extortion insurance $ o Reputation guard Retroactive date: October 1, 2016 Extended reporting period: t00% of annual premium for 1 year; 175% of annual premium for 2 years; 200% of annual premium for 3 years Comments: Exclusion(s) in this policy include, but are not limited to: Terms and conditions: . Claims made and reported policy • Insured/Insurer duty to defend • Defense inside Exclusionary endorsements: Per policy form This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 9/6/2016 Prepared for City Of Lubbock Confidential. © 2016 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 31 CERTiRcATE 4F INTERESTED PARTIES FoRm 1295 1of1 CWfIete Nbr� 1- d and S inflate ace interested paws OFFICE USE ONLY bete Nos:1, 2. % S. and 6 y there are no "mterestei park& CERTMATION OF FRAdG t;eah`llicale Number_ 2016-218076 I Kame of business entity filing farm, and the city, sta;emnd covouyetow bush Rss endlI'� p'bce of business. Illinois National Insurance Company Adanta, CA United States gate Filed: 09MI2016 2 Name of'Sovernmental entity or state agency that is a party to the contract tortwNWEetormis being fled. City of Lubbock Date Acknowledged: g Provide the Identification number used by the governmental entity or state agency to track or identify description of the services, goods, or other property to be provided underthe contract. the contract, and provide a 13D77 Cyber Liability Insurance Policy 4 Name of Interested Party City, State, Country {place of business} Nature of interest (chock applicable) Controlling J intermediary Douglas, Sanford Lubbock, TX United States X 5 Check only if there is NO Interested Party. ❑ s AFFIDAVIT LOWa !'P I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. �., Signature of autqorized agent of contracting business entity AFFIX NO Q PS3, 20�5ROv SwolIr to and sub l .o ,> Q d iJt_.� 1i/} 4� . t� , this the t/ day of 2t} ! to certify hand and seal of office. `1 or fQiyt. �.au,ei �I Wg!.,. of officer administering oath Printed name of officer administering oath Title of officer adminis ng oath Forms provided by Texas Ethics Commission Www.ethlcs.state.tx.us Version V1.0.277 Is