Given the likelihood that all of our businesses will at some point experience a cyber breach, experts emphasize the importance of naming a designated response team. A cyber breach does not necessarily spell disaster, but being unprepared to handle it could. Preparation advice is here!
A Practical Solution
Not surprisingly, a 2020 analysis by IBM concluded that the data most frequently compromised by cyber breaches is customers’ personally identifiable data (PII). Like the data in your retirement plan, right?
Although small businesses are considered lucrative targets by cybercriminals, experts have estimated that only about 14% are prepared to respond to a cyber breach. In fact, lack of preparedness is likely the main reason why as many as 60% of small businesses end up out of business after being victimized by a cyber breach.
Designating an incident response team is an important way to mitigate the damage and cost of a cyber breach. Let’s face it though, many small businesses simply lack the resources to form an expert response team. How many small businesses, do you know, for example, that could establish this recommended incident response team:
This team should be made up of a team leader, an investigator, a communications lead, documentation and timeline lead, and an HR/legal lead.
Short of all these experts (and their fees), small businesses find themselves going it alone with cyber breaches, trying to prevent escalation and lost business while also managing the fallout. To help, Colonial Surety Company provides a unique and affordable protection package, designed specifically to help retirement plan sponsors at small businesses.
When you are armed with Colonial’s Cyber Liability protection, presto: in the event of a breach, you will have the help of expert forensic and legal experts, who will identify what’s been comprised and coordinate the response. As needed, call-center support, credit and identity monitoring services and even public relations expertise are provided. Liability protection in the event of covered lawsuits or regulatory actions due to a data breach? Of course, that’s included too. Learn More and Obtain Cyber Liability Protection Here.
Extra Support for Retirement Plan Sponsors
Small business owners who sponsor retirement plans also have to consider their fiduciary liabilities vis a vis cyber breaches. A formal statement from the U.S. Department of Labor on the responsibilities of retirement plan fiduciaries is anticipated. Meanwhile, legal experts, like Andrew Williams, Partner at Golan Christie counsel:
As to the employer’s own responsibility, consider maintaining fiduciary insurance to cover any security breach that allegedly results from the employer’s conduct as the plan sponsor or designated “plan administrator.”
Can you even imagine how allegations of a fiduciary breach would divert attention and resources from the business you have built—and your life? For example, if you suddenly needed an attorney with ERISA expertise, you would likely pay upwards of $600—per hour. Avoid this possibility—and a lot of other stress—add Colonial Surety Company’s affordable fiduciary liability protection to your complete plan sponsor protection package.
With Colonial’s comprehensive package, plan sponsors receive:
- The ERISA bond required to protect the assets of the retirement plan from theft;
- Fiduciary Liability coverage to protect you and your assets from personal liability;
- Cyber Liability coverage to protect your company and plan from covered losses and expenses in the event of a cyber breach.
Colonial Surety Company is a leading national and direct provider of ERISA Fidelity Bonds. We are rated “A Excellent” by A.M. Best Company, U.S. Treasury listed and in business all across the country.
Founded in 1930, Colonial uses our experience—plus technology—to give small businesses easy, direct and affordable access to the same kinds of protections big corporations have. We excel at packaging products that make it simpler and faster for businesses to quickly access the protections they need. Oh, yeah—and we are here for You!