Insurance (including cyber insurance) is an allowable expense per HAVA 101(b)(1)(B) and 2 CFR §200.447. Costs must be allocated based on the benefit to the improvement of the administration of elections for Federal Office, per 2 CFR § 200.405 and HAVA 101(b)(1)(B). An allocation methodology representative to the benefit of federal elections should be included when allowing and allocating cyber insurance costs. An expenditure for cyber insurance should follow the limitations set by §200.447 as well as general allocation principles for HAVA grants.
For additional guidance on insurance please see the FAQ titled “May a state use HAVA funds to lease or purchase buildings or equipment?”