Local governments should consider purchasing cybersecurity insurance, which can help address existing cyber vulnerabilities and reduce recovery costs in the event of a breach. Slightly less than half of the local governments in our survey had purchased cyber insurance, but the trend seems to be on the increase. No wonder: Cybersecurity insurance pays off. In June, Lake City, Fla., experienced a ransomware attack that took down its computer systems, email, phones and more. The hackers demanded a $470,000 ransom to release the systems. Lake City officials agreed, but only had to pay $10,000 out of its budget, the cyber insurance deductible, while the insurance carrier negotiated and paid the rest.