Cyber

Business Owner Data Breach Liability

06/25/2019

Cyber attacks on businesses are almost becoming a matter of “when” and not “if.” If a cyber attacker is able to hack your business and steal sensitive and valuable data from your business, what kind of liability does a business owner have?

Small and medium sized businesses are becoming main targets of cyber attackers as they often have less robust cyber defense systems than larger companies. And 90% of small businesses are hurt downstream by data breaches in some fashion. Data can be stolen or funds taken. Should this happen to your business, what kind of liability would you have as the business owner?

If a business owner is found to be negligent in their duties of reducing the likelihood of a successful cyber attack or is found to have not done enough after the breach to detect and contain it, he or she can be found liable. Cyber attacks are running small businesses straight out of business and with owners being held liable, a cyber attack can have devastating consequences for business owners. And they’re almost impossible to prevent. How can business owners protect themselves and their business when an attack occurs?

How can you detect and contain cyber attacks and data breaches?

Colonial Surety Company is a Treasury Listed surety company providing ERISA fidelity bonds packaged with fiduciary liability insurance and cyber liability insurance. Colonial is one of the leading providers of ERISA related products, offering bonds approved by the Dept. of Labor. We make it easy to obtain your bond instantly as well as allowing you to purchase retroactive insurance for the years the plan was not previously covered.

Colonial’s cyber insurance provides a services-based solution to help plan sponsors manage data breaches successfully. These services include a dedicated team of cyber breach professionals who assist plan sponsors at every stage of incident investigation and breach response. These professionals coordinate the carefully vetted forensics experts and specialized lawyers to help plan sponsors establish what’s been compromised; assess plan sponsor responsibility; and, notify those individuals affected. In addition, these services will also coordinate credit or identity monitoring, and PR advice to help the plan sponsor safeguard its reputation. Of course, Colonial’s cyber insurance also indemnifies and defends plan sponsors from covered lawsuits or regulatory actions, the risk of which may be reduced by a well-coordinated breach response, but can never be completely eliminated.

If you would like to learn more about purchasing an ERISA fidelity bond, or an ERISA fidelity bond package including fiduciary liability insurance or cyber liability insurance, call 877.650.9661 or email ERISADept@colonialsurety.com. Learn more about becoming a Pension Professional Partner here.