The U.S. Supreme Court has found that Zappos, an Amazon subsidiary, can be sued by customers who were victims of a Zappos data breach in 2012 without the customer showing that the breach harmed them.
The Supreme Court agreed with a California appeals court that the stolen data left the customers vulnerable to identity theft and that was enough; there was no need to exhibit actual harm to the customers. Click here to learn more.
As companies store more and more customer data, more and more customers would be affected by a potential data breach. So how can you contain a data breach for your retirement plan and manage the breach effectively? Cyber liability insurance.
Where can I easily purchase Cyber Liability Insurance to protect my company and retirement plan?
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.