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SUBJECT
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Authorizing the City Manager to approve the City’s Cyber Liability Insurance Policy for fiscal year 2026-2027 through Tokio Marine HCC and billed through TMLIRP, in the amount of $119,108.89, with a maximum policy aggregate limit is $5,000,000 and applicable deductible of $100,000. The policy term of is October 1, 2026 through October 1, 2027. Funding is available under the Risk Management Fund. body
PREVIOUS COUNCIL ACTION
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BACKGROUND
The City of Laredo historically secures its property, liability, and cyber insurance coverage through the Texas Municipal League Intergovernmental Risk Pool (TMLIRP). Cyber liability coverage is currently provided through Tokio Marine HCC/Houston Casualty Company and billed through TMLIRP.
For fiscal year 2025-2026, the City's cyber liability premium was approximately $95,000. The proposed fiscal year 2026-2027 renewal is $119,108.89 and maintains a maximum policy aggregate limit of $5,000,000. The renewal includes first-party and third-party cyber liability coverage, subject to the applicable terms, conditions, exclusions, deductibles, and sublimits of the policy.
As part of the renewal underwriting process, the City's reported revenue increased from approximately $679 million to approximately $1.1 billion. According to the City's insurance representative, the increase in reported revenue would have resulted in a larger premium adjustment if fully applied at renewal. The carrier agreed to phase in the resulting rate adjustment over two renewal cycles to reduce the immediate budget impact.
The current renewal reflects the first phase of that adjustment. The carrier has advised that, assuming revenue, claims experience, cybersecurity controls, and other underwriting factors remain generally consistent, an additional premium increase of approximately $19,000 may be anticipated at the next annual renewal. Any future premium remains subject to annual underwriting, policy terms, and City Council approval, as...
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