On July 11, 2025, intermittent disruptions to Pennsylvania’s 911 emergency telephone number service resulted in some calls failing to connect. As outage reports continued, the Pennsylvania Emergency Management Agency (PEMA) notified people statewide to contact their counties’ 911 centers using traditional, 10-digit phone numbers if needed.

Fortunately, authorities soon restored services. A preliminary report attributes the 911 outages to an operating system defect and not a cyber attack, as some initially feared.

Even so, the episode highlights the importance of Cyber Insurance for municipalities.

Had Pennsylvania’s brief 911 outages stemmed from a cyber attack, robust Cyber Insurance coverage wouldn’t have prevented confusion and concern, but it could have mitigated much of the operational and financial fallout.

Why Cyber Security for Local Government Is a Must

The need for strong, effective cyber security solutions for government is great.

Because local governments rely on online systems to communicate with, collect revenue from, and deliver services to constituents, they are constantly exposed to the possibility of cyber incidents. And because they hold and handle citizens’ sensitive data—including personally identifiable information (PII), financial records, and health data—cyber criminals regard them as especially lucrative targets.

To make matters worse, local government organizations frequently use outdated, legacy technology, compounding their vulnerability. They also often face budgetary constraints that keep them from upgrading their equipment or implementing stronger cyber security infrastructure.

Consider these statistics about ransomware attacks alone:

• State, local, tribal, and territorial governments were the third-most-targeted sector by ransomware in 2023, yet more than 80% have fewer than five dedicated cyber security employees.
• Though ransomware attacks fell in 2024, state and local government organizations’ average cost of recovery rose to $2.83 million, more than double the $1.21 million average in 2023.
• On average, ransomware attacks in 2024 affected 56% of computers in state and local government organizations, above the cross-sector average of 49%.

Ransomware attacks, of course, aren’t the only cyber threat municipalities and other local governments face:

• Other malware attacks, including viruses and spyware, can disrupt operations and steal sensitive data.
• Phishing scams are a common entry point for attackers, exploiting human error to gain access to systems.
• Social engineering attacks prey on people’s trust and manipulate them into divulging login credentials and confidential information.

What a Cyber Incident Can Cost a Local Government

The financial consequences of a successful cyber attack can be severe.

For example, in 2021, a ransomware gang breached 150 of the Pottawatomie County government’s computers, affecting the tax department and driver’s license system. Officials paid $71,606.25 in ransom to release control of the data—a reduction from the criminals’ initial $1 million demand, but still a steep price to pay.

Steeper still were the total costs the city of Baltimore paid after a major ransomware attack in 2019. For two weeks, the malware took down internal email systems and services for those paying taxes and parking tickets, among others. Baltimore refused to pay a ransom, but estimated recovery costs reached $18.2 million.

Beyond the high costs of repairing, restoring, and upgrading systems, even short-lived disruptions of essential government services—such as 911, for instance—can endanger lives and erode confidence in local government and its ability to protect citizens’ information.

Insurance Strengthens Cyber Security for Municipalities

A majority (64%) of local government IT executives surveyed in 2023 said their budgets aren’t adequate to support cyber security initiatives. Recent federal funding cuts to the Multi-State Information Sharing and Analysis Center (MS-ISAC) may also endanger state and municipalities’ ability to protect IT and election systems from cyber attacks.

Cyber Insurance for municipalities can provide a crucial layer of protection and help bridge the gaps.

Policies typically cover a range of expenses related to cyber incidents, including the costs of:

• Investigating and responding to the attack
• Making ransom payments
• Recovering data and restoring systems
• Notifying affected individuals
• Providing credit monitoring services
• Defending against legal claims
• Paying regulatory fines

And the benefits can go beyond financial protection. Cyber Insurance policies can provide access to specialized incident response teams of cyber security experts, legal counsel, and public relations professionals. These teams can help municipalities minimize an incident’s impact, work toward a swift recovery, and rebuild confidence in the local government.

Help Your Government Clients Protect Themselves and the People

While Cyber Insurance for municipalities isn’t a stand-alone solution, it is a critical component of a comprehensive cyber security strategy.

In recent years, local governments’ awareness of and willingness to carry Cyber Insurance has been high. For example, between 2018 and 2022, the percentage of local governments carrying policies grew from 54% to 92%. However, not all government agencies and other public entities yet have this vital protection in place.

ProWriters can help you educate your clients in state and local government about the importance of Cyber Insurance and secure for them the policies they need. To find out how, schedule a time to talk with us, or call us at 484-321-2335.

To learn more about Cyber Insurance for municipalities, watch the video below.

For more video resources, visit Cyber U.