County ready to buy cyber insurance

With the increasing amount of business conducted online, Flathead County commissioners recently voted to purchase cyber insurance.

County Human Resources Officer Rae Ann Campbell and county Information Technology Director Vicky Saxby recommended the commissioners add the coverage to the county's insurance policy.

Saxby told commissioners the insurance would cover costs associated with any data breach. Data shows it costs $214 per person per breach to remedy the breach, she said. "I feel we need a cyber security policy," Saxby said.

Brad Salonen of Western States Insurance, the county's insurance provider, said the county's general liability insurance policy doesn't provide any coverage for cyber issues. The cyber policy the county purchased, to take effect July 1, provides coverage for extortion and litigation, Salonen said. It has a $1 million payout limit.

Cyber insurance is still a relatively new type of coverage, Salonen said. Today, insurance industry data shows 2-3 percent of all entities have such policies, but he predicted that within five or 10 years "everyone will have it."

Commissioners agreed to buy a policy with a $25,000 deductible for $12,707 a year.

Commissioner Dale Lauman supported the additional policy.

"The more protection we have, the better off we are," he said.

In other recent business, commissioners:

• Heard from county Finance Director Sandy Carlson that the bond sale for the remaining $800,000 in bonds to fund the 911 center is scheduled for Aug. 2.

Carlson also explained that the county will actually collect $770,000 in tax revenue because the $30,000 in fees are subtracted from the proceeds of the bond sales. The county will incur printing costs and administrative costs for the bond attorney and the financial consultant.

• Agreed to increase the amount the county contributes toward burial and headstone costs for military veterans, to keep in line with higher amounts approved by the Montana Legislature earlier this year.

The county will now pay $500 toward burial costs and $100 for headstone costs, up from $250 and $70, respectively.

Carlson said the county contributes to the costs of about 160 burials and 50 headstones per year.

Lauman endorsed the higher payments.

"They put their life in jeopardy for us," he said of veterans. "This is the least we can do."

Reporter Shelley Ridenour may be reached at 758-4439 or sridenour@dailyinterlake.com.