DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Purchase Cyber Security Insurance Policy With AIG Specialty Insurance Company
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RESOLUTION
body
WHEREAS, Dakota County purchases insurance to cover financial risks that can result in significant costs and are unpredictable in nature; and
WHEREAS, there has been a substantial increase in cyber security attacks on public sector entities over the last several years; and
WHEREAS, an evaluation of the cyber security marketplace for competitive pricing was completed; and
WHEREAS, based on the evaluation of the marketplace, staff is recommending the purchase of cyber security liability insurance with a limit of liability of $3,000,000 with AIG Specialty Insurance Company.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Deputy County Manager to purchase the following insurance to be paid from the 2026 Office of Risk Management budget:
AIG Specialty Insurance Company
Cyber Security Insurance
October 31, 2026, through October 31, 2027
Premium not to exceed $95,184
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BACKGROUND
Dakota County has maintained a cyber security insurance policy since 2018. Public sector organizations remain among the most frequently targeted industries for cyber-attacks. While ransomware and data breaches have historically driven premium increases, recent market competition has moderated rates even as threats continue to grow in frequency and sophistication.
Risk Management and Information Technology (IT) collaborated with Gallagher Risk Partners to complete the cyber insurance application and solicitation process. IT has also implemented a 24/7 Security Operations Center (SOC) to strengthen continuous monitoring and incident response capabilities, addressing a key risk-mitigation control identified by the County’s insurance carrier.
Given the limited number of carriers willing to insure public entities, the County’s coverage was marketed selectively. AIG Specialty Insurance Company, a leading cyber insurer, offered a renewal quote. The carrier continues to view Dakota County favorably, and the renewal premium remains flat at $95,184. The deductible remains at $100,000, and the aggregate policy limit remains at $3,000,000.
RECOMMENDATION
recommendation
Staff recommends the Board authorize the Deputy County Manager to renew the cyber security insurance contract with AIG Specialty Insurance Company for the policy period October 31, 2026, through October 31, 2027.
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FINANCIAL AND STAFFING IMPACTS
The current year cost of $15,864 is included in the 2026 Office of Risk Management Budget and is funded by levy. The remaining contract costs of $79,320 will be included in the 2027 County Manager’s Recommended Budget as part of the Office of Risk Management Budget and will be funded by levy.
|
Fund |
Department |
Program |
Funding Source |
Approved Budget |
|
101-General Fund |
Risk & Emergency Management |
53081-Insurance Fees |
Levy |
$110,897 2026 budget |
|
Fund |
Department |
Program |
Funding Source |
Recommended Budget |
|
101-General Fund |
Risk & Emergency Management |
53081-InsuranceFees |
Levy |
$125,676 2027 budget |
PREVIOUS BOARD ACTION
25-510; 10/21/25
ATTACHMENTS
Attachment: Cyber Insurance Renewal Summary
Attachment: RBA Contract Summary Sheet AIG Specialty Insurance Company
CONTACT
Department Director: Jenny Groskopf
Author: Sarah Fenske