Cyber for Plan Sponsors

Your Company Doesn’t Need to Store Information to be Victim of Cyber Attack


A common misconception is that a company needs to store some type of information to be a target of a cyber-attack or data breach. But you would be incorrect. Having something as simple as a payment system makes you a target of cyber attackers to charge stolen credit cards with your credentials, for example.

A website is not a requirement for the cyber breach. Just using a payment system that is not attached to a site with proper fraud tools gives cyber attackers enough. As long as you have some sort of technological presence, cyber attackers are savvy enough to find a way to use what you have for their benefit.

This will typically happen to small businesses who are not as technologically savvy and do not have the same cyber protections in place as larger companies. They may not be familiar with cyber-attacks or that they are vulnerable to them, but these attacks can easily put small businesses out of business in one fell swoop.

Your small business may not store information or have much of an online presence. But it is likely you can still fall victim to cyber criminals and that could potentially put your company out of business.

Small companies can protect themselves from cyber attackers with cyber liability insurance

Colonial Surety includes cyber liability insurance with our ERISA fidelity bond packages with fiduciary liability insurance to best protect your company plan against a cyber attack.

Colonial’s cyber insurance provides a service-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 an incident investigation and breach response. These professionals coordinate the carefully vetted forensics experts and specialized lawyers to help plan sponsors establish what has 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 their 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.

Ongoing governance and evaluation of recordkeepers can help protect data, but the only way to fully protect against a potential cyber attack’s data breach is to purchase cyber liability insurance from Colonial Surety Company.