City of Morris has acquired cyber insurance protection to guard against digital risks
Morris, Illinois, residents will now be protected by cyber insurance coverage. The Morris City Council voted earlier this week to purchase $2 million in cyber insurance protection from the HCC Insurance Group. According to the city council, this coverage will cost approximately $7,183 a year. The policy that the city has purchased will ensure that residents will have access to services that can aid them if the city’s information system where every compromised by a cyber attack.
Cyber attacks could become a costly problem for cities
Cyber attacks represent a major risk for many organizations. Generally, issues concerning cyber insurance are usually confined to the business sector, but cities are also exposed to significant digital risks that they must protect themselves against as well. A cyber attack could be a costly problem for a city, especially if consumer information is exploited in a malicious fashion. Cyber insurance can help a city cover the costs associated with cyber attacks while also offering access to services to help people protect their identities and sensitive information.
Morris City Council opts for a higher level of coverage
The Morris City Council had considered acquiring a less expensive cyber insurance plan in the past, but the policy city officials were interested would have higher premiums and would offer fewer coverage benefits. The plan that the city opted for is expected to adequately protect it from the risks that exist in the digital space. HCC Insurance Group notes that cyber insurance is one of the fastest growing insurance products in the world and more businesses and governing bodies are beginning to see the importance of this coverage.
A digital attack could be an expensive burden for Morris
In the event of a major cyber attack, Morris officials will be required to notify residents of the event. The city expects to spend $250,000 to notify residents through conventional methods. The city may also face lawsuits from those that have had their personal information stolen. Cyber insurance coverage can help cover the costs associated with these issues, mitigating the financial risks that the city faces from having a digital information system.