I am not surprised by the constraints. School District reports a 334% hike in cybersecurity insurance costs.
Insurance costs went from $6,661 in 2021 to $22,229 in 2022.
"In light of events that have negatively impacted the Cyber Insurance market, SSCIP was unable to initially find the required coverage for the group," mentions the memo.
Suburban School Cooperative Insurance Program (SSCIP) is a cooperative of school districts formed to get better rates.
As for the constraints.
As the District 87 memo mentioned, the insurer has also required that the district fully implement multi-factor authentication protection on all its accounts.
The school estimates that they can conclude this change by March 30, 2022. However, until that happens, the coverage limits will remain decreased, well below the consented amount.
Given all of the press about schools being hit with ransomware in the past few years, why is multi-factor authentication not in place?
Oh, yeah. "It's too hard." "I don't understand computers." And a host of other excuses.
I hope that helps, but my guess is that in a year or two, not cyber insurance will be available for hacking and ransomware. Unless law enforcement is better than it has been.
An insurance company will always sell you something. I expect they'll use exclusions and coverage limits to keep the policies profitable and affordable. Lost all academic records for the current year? Here's a check to have the OS reinstalled on all servers, sorry about your data, that's not covered.
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