Prince Township in Ontario is deliberating on whether it could stretch its cyber insurance budget.
The township’s council met recently to discuss its insurance options, as the community is set to renew its municipal policy next month.
Algoma Insurance commercial account executive Carlo DiCandia told the council that it would cost an additional $2,500 to include cyber liability insurance in their current policy. Insurance premiums for the policy are expected to exceed $33,000, plus harmonized sales tax, even without the rider.
DiCandia explained to the council that the township’s current policy with Jardine Lloyd Thompson Canada would cover damages to computer and telecom systems caused by viruses and hacking. However, the policy will not cover the town from lawsuits filed by residents seeking to claim damages from having their privacy breached.
He added that while cyber liability insurance would not prevent information theft, it would offer coverage for responses to cyberattacks, as well as coverage for funds stolen from bank accounts. Cyber liability insurance would also cover the cost of business interruption, as well as the cost to defend a municipality in court in the event of a lawsuit.
According to DiCandia, Algoma Insurance will even provide the township with personnel to help notify individuals affected by privacy breaches and to advise victims to contact their banks and credit card companies.
DiCandia warned the council that cyberattacks on municipalities are no longer rare events.
Sault Star reported that the town council agreed to review DiCandia’s suggestions before the next meeting on February 12, when the decision to purchase cyber liability insurance will be put to a vote.
