Montana County Buying Cyber Insurance

June 28, 2011

Flathead County has purchased a cyber insurance policy to cover the county in the case of a data breach.

The Daily Inter Lake reports the county’s new cyber insurance policy takes effect July 1. Western States Insurance agent Brad Salonen says the policy offers coverage for extortion and litigation up to a $1 million payout limit.

County Information Technology Director Vicky Saxby recommended county commissioners add the coverage. She says data shows it costs $214 per person per breach to remedy any data breaches.

Commissioners agreed to buy a policy with a $25,000 deductible for $12,700 a year.

Salonen says cyber insurance is still a relatively new type of coverage. Insurance industry data shows 2 percent to 3 percent of all entities have such policies.

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