Cyber for Plan Sponsors

Best Cyber Defense Practices May Not Stop Data Breaches


You can read guides on how to best protect sensitive data stored by a 401(k) plan related to its participants and funds. Monitoring and securing accounts on a regular schedule can help make sure that only the right people have access and updating anti-virus software can prevent some attacks as well. Using secure Wi-Fi networks and limiting access to only necessary parties can provide added security as well.

But with cyber attacks become more sophisticated and multi-faceted all the time, there is only so much you can do. Financial firms in the United Kingdom, for example, saw 12 times as many cyber incidents in 2018 as opposed to 2017. These attacks are becoming more prevalent and it is extremely difficult to be prepared on all fronts for them.

If you are a small business, it can be even harder. You cannot invest in cybersecurity to the same degree as larger companies can, making your company vulnerable. Cyber attackers can more easily breach your data as they turn away from the more beefed up security programs of larger companies.

It is in the best interest of a small business that cannot defend itself on all fronts to focus on containing and managing a data breach when or if it should occur. Cyber liability insurance will connect to professionals that can help contain and manage a seemingly inevitable data breach.

Where can you purchase instant cyber liability insurance?

Colonial Surety offers an included cyber liability insurance endorsement for our ERISA fidelity bond packages with fiduciary liability insurance to best protect your plan against a cyber attack.

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.

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.