As state and local governments find themselves in possession of more private information that could be illegally accessed online, Cyber Liability is a coverage area of growing interest for public-sector risk managers.

“We now have access to credit-card numbers and other [sensitive data] that historically we didn't have,” says Cindy Mallett, human-resources and risk manager for the city of Gainesville, Ga.

“We're starting to think about the risks associated with that and starting to look at products in the market to address that in the public sector,” Mallett notes.

“Cyber is the hot [coverage] everybody's talking about,” adds William F. Becker, executive vice president for Aon Risk Solutions and head of the firm's Public Sector practice.

Insurers are already working on solutions. Travelers Insurance Cos. recently launched Public Entity Cyber+ Liability, offering network protection against hacking, phishing and other forms of information breach. The product also provides coverage for defense costs against lawsuits and claims against public entities.

The Ace Group offers worldwide public-sector cyber coverage via Ace GPS, a product that protects public, private and nonprofit entities against loss or corruption of data and virus or hacker attacks across international borders.

Special Reports /

Public-Sector Cyber Exposure a Growing Concern

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