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HomeMy WebLinkAboutResolution - 2020-R0292 - Network Security InsuranceResolution No. 2020-RO292 Item No. 7.10 September 8, 2020 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 $67,290; and THAT the City Manager may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this September 8, 2020 DANIEL M. POPE, MAYOR AT" EST: Reb ca Garza, City Secr tary APPROVED AS TO CONTENT: ����A � U• �r Kqyfelich, ChierF—iffifrcial Officer APPROVED AS TO FORM: JefMarlk Il, Deputy City Attorney RES.Risk Mgmt-Certain Underwriters at Lloyd's of London August 25, 2020 Cyber Liability Insurance Company: Certain Underwriters at Lloyd's of London Policy Term: 10/01/2019 to 10/01/2020 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: $67,290.00 — Including Taxes & Fees Aggregate Policy Limit 5,000,000 Security & Privacy Liability 5,000,000 50,000 Multimedia & Intellectual Property Liability 5,000,000 50,000 Technology Services N/A N/A Miscellaneous Professional Services N/A N/A Network Interruption and Recovery 5,000,000 50,000 8 Hours Event Support Expenses 5,000,000 50,000 Privacy Regulatory Defense & Penalties 5,000,000 50,000 Network Extortion 5,000,000 50,000 Electronic Theft, Computer Fraud & Telecommunications Fraud 250,000 N/A Social Engineering Fraud 250,000 N/A Reputational Damage 5,000,000 50,000 Endorsed PC] Fines 5,000,000 50,000 Dependent Network Interruption & Recovery 250,000 25,000 Bricking 250,000 50,000 - Terms and conditions based off Revenue Split by Location as specified below • Terms and conditions based off Revenue Split by Location as specified below • Retroactive Date— Full Prior Acts • NMA1256 Nuclear Incident Exclusion (USA) • NMA1477 Radioactive Contamination Clause (USA) • LSW1001 Several Liability Notice (Insurance) • LSW3000 Premium Payment Clause 45 Days • NMA1168 Small Additional Or Return Premiums Clause (USA) • LSW1023A Texas Surplus Lines Clause • LSW1022A Texas Complaints Notice • APPA Amendatory • Bricking • Cyber Terrorism • Dependent Network Interruption and Recovery • Miller Amendatory • Notice of Terrorism Insurance Coverage LMA9105 • Payment Card Industry Fines and Assessments • Marsh Amendatory • California Consumer Protection Act (CCPA) Extension • Voluntary Shutdown Extension 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 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 Excluded coverage or other coverages sought may be available: please discuss with USI 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. 53 In respect of: A circumstance, claim or an event which may entitle you to an indemnity for costs or expenses under your policy contact: Breach Response, CyberScout, 7580 N Dobson Rd #201, Scottsdale, AZ 85256, breach@cyberscout.com, +1 (0) 844-858-9578 Kissel Hirsh & Wilmer LLP, 580 White Plains Rd., Sth 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.