SLC signs off on contract for $5 million cybersecurity insurance policy as hack attempts increase
CANTON — St. Lawrence County legislators say an uptick in hack attempts have prompted them to support the purchase of a $5 million information technology insurance policy with Tokio Marine HCC.
Information Technology Director Rick Johnson told legislators during the July 13 Operations Committee meeting the insurance policy will cover a lapse of sorts that the county has experienced for some time.
As part of the policy, Johnson confirmed the county has undergone a risk assessment. Under the terms of the contract, periodic reassessments will also take place.
The policy provides $5 million in coverage “for all areas with reduced coverage for ransomware and cyber extortion loss pending security steps to be completed by the end of August,” county officials said.
When asked by Legislator Larry Denesha about the overall cost, Johnson confirmed the cost could go down if the assessment found the county security continually improved.
Johnson said the county was working on improvements such as two-source authentication and similar measures.
County officials said public sector organizations, including local governments, have faced a 65% year-over-year increase in targeted ransomware attacks.
The average breach costs millions to mitigate, they said.
According to Administrator Ruth Doyle, the county has also experienced such an uptick, including an attack as recently as the prior weekend.
The contract, which will cost $44,000 falls in line with standard pricing, Johnson confirmed.
As part of the process, county officials used a broker that works with government entities to find the best coverage possible, Johnson said.
He commented that the broker, NFP, works with “hundreds of insurance companies” and sought multiple proposals in the competitive process.
The proposals were then reviewed by Johnson, Doyle and County Attorney Steve Button, Johnson told legislators.
With the contract before the county, Legislator David Forsythe questioned when the county should sign off on the deal.
“I’m just thinking for administrative purposes maybe having the contract begin January 1 would make the most sense,” Forsythe said.
He questioned what difference signing the contract now versus in December for an effective date of January 1 would matter.
But Doyle pushed back slightly on the idea, saying the county was experiencing an uptick in attempts and having the coverage would cover the gaps currently in place.
Forsythe said he was not opposed to the contract being signed for the planned effective period of September 1, 2026 through August 31, 2027 but felt the administrative aspect should also be considered.
Doyle said she was concerned that a five-month delay could further expose the county.
“But something could have also happened for the last 15 years too,” Forsythe commented.
He said he was not as concerned with waiting for five more months to ease the administrative side of things and allow for the funding to be planned in next year’s budget.
As it stands, the $44,000 for the contract would come from the county’s fund balance, Doyle confirmed.
Though a vote was held to consider delaying the contract the measure narrowly failed on the floor.
Legislators approved the resolution unanimously shortly after at the committee meeting, but full board approval is still needed.
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