According to Wall Street Journal, majority of the top 25 cities in the country have a cyber security insurance policy in place, or at the very least, shopping for cyber coverage. After the ludicrously expensive ransomware attack on the City of Atlanta, which initially cost the city departments over $2 million plus hours of labor trying to recover damaged and lost data, recent reports indicate that this attack actually cost the city over $9 million to fully recover. With that being said, cities have no choice but to take cyber insurance into serious consideration.
The city of Houston has 3 $10 million cyber liability insurance policies in place to protect any low hanging fruit (departments with old systems and lacking cyber security protocols, as well as the city as a whole) from being the victim of a cyber attack. This came into place after Houston’s Chief Security Officer approached local law makers to persuade them cyber insurance was a worthy investment as their policies will protect the city from hackers’ extortion demands, legal liabilities, computer-forensics expertise and costs for problems like having government services knocked off line.
Due to the rise in cyber attacks on state and local governments, city officials have no choice but to consider implementing a cyber insurance policy to avoid inevitable truths pertaining to the likelihood of an attack on one or all of their departments. As the Wall Street Journal mentions, major city officials are stepping up and arguing the serious need for cyber insurance, among those cities are: Boston, San Jose, Nashville, Washington D.C., etc.
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