Privacy & Network Liability and Cyber Extension Coverage is Changing

Since PEP began offering Privacy & Network Liability in 2012, the scope of cyber claims has steadily increased in frequency and severity. As cyber threats continue to evolve, governmental entities now face a considerably higher-than-average risk of being targeted.

Considering these substantial challenges, it has become clear that better serving our members requires a cyber program that provides access to resources such as dark web monitoring, phishing campaigns and deep scanning of member networks, along with broader coverage and expanded breach-response resources. After careful deliberation, our Board of Directors recently approved changes to the Cyber Coverage Program which will take effect January 1, 2027. 

At that time, PEP will transition from our current Privacy & Network Liability and Cyber Extension coverages to partner with CFC — a leader in the global cyber insurance marketplace — to offer members a broader cyber insurance program with enhanced coverage and expanded risk management and incident response services.

The new program includes comprehensive protection for both third-party liability and first-party losses. These include:

• Network Security & Privacy Liability
• Cyber Crime
• System Damage & Business Interruption
• Criminal Reward Coverage
• Media Liability
• Court Attendance Costs
• Cyber Incident Response Coverage

MEMBER ELIGIBILITY AND NEXT STEPS

Again, these changes will take effect January 1, 2027. To continue cyber coverage beyond December 31, 2026, your entity must opt in to the new program by completing and returning the Cyber Coverage Opt-in form no later than November 15, 2026.

All members with Errors or Omissions Liability Coverage have been sent a copy of a critical notice detailing the program changes along with an annual premium estimate and opt-in form.

Completed opt-in forms may be submitted by email at CyberCoverage@PEPartners.org or by mail at:

Cyber Coverage - Public Entity Partners

562 Franklin Road, Suite 200

Franklin, TN  37069

Please read all policy terms, conditions and exclusions found in the CFC specimen policy.

For questions, please contact your underwriter or member services representative.