DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
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Authorization To Purchase Cyber Security Insurance Policy With AIG Specialty Insurance Company
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RESOLUTION
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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 riskmitigation control identified by the County’s insurance carrier.
Given the limited number of carriers willing to insure public entities, the County’s coverage was marke...
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