The Pros and Cons of Cybersecurity Insurance for Municipalities
Local agencies face many challenges in procuring insurance against cyberattacks. But while it can mitigate risk, agencies shouldn’t treat insurance as a bailout fund.
Cybersecurity insurance for municipalities is increasingly expensive and difficult to get. At a time when cyberattacks against the public sector are on the rise, 69 percent of local governments say they are paying higher premiums for cyber insurance, according to a survey by CompTIA’s Public Technology Institute.
Yet, municipalities have an urgent need to make use of such insurance. The average breach can cost a state as much as $40.53 million, with the median cost ranging from $60,000 to as much as $1.87 million, according to one recent report.