For a small municipality, the risk is structurally worse than for a medium-sized private company. Municipalities in South Carolina generally obtain their property, liability and cyber coverage through the South Carolina Municipal Insurance and Risk Financing Fund, a member-funded pool that provides a base layer of just $100,000 in direct cyber coverage, with an optional commercial cyber policy on top for members who apply and qualify for it. Even in the best-case scenario, where every layer of that structure reacts cleanly, $100,000 doesn’t come close to covering the loss of $545,598.30. Multiply that difference across the thousands of small municipalities, school districts and special purpose entities that rely on similar pooled arrangements across the country, and the underlying math is the same everywhere: previously modestly pooled cyber limits, designed for small threats, are now facing losses that have greatly increased.
What a $545,000 email scam in a South Carolina beach town reveals about municipal coverage gaps & more related News Here
