Cyber for Plan Sponsors

Equifax Took Cybersecurity Seriously, Was Still Hacked

05.30.2019

Every organization should take cybersecurity seriously, from the mom and pop shop down the street to Amazon. Equifax CEO Mark Begor testified to the United States Senate that the company took cybersecurity seriously prior to the 2017 hack that breached the data of 143 million people.

And yet they were still hacked.

Taking cybersecurity seriously isn’t enough anymore. As hackers and cyber attacks become more sophisticated and rise from a person in a basement to international criminals, data is more at risk than ever even with cybersecurity in place.

Cybersecurity measures are useful and help, but even they can be penetrated by criminals. Attackers are always generating new methods to stay ahead of the defenses. Click here to learn more.

The best thing you can do in addition to installing cybersecurity measures is to get cyber liability insurance to have a breach response team in place that can resolve the breach and prevent more data from being stolen in the future.

Where can plan sponsors instantly purchase cyber liability insurance to protect themselves and their companies from a breach?

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.

Under ERISA, fiduciaries may be held personally liable for a breach of their responsibilities in the administration or handling of employee benefit plans. Under ERISA 410, the plan cannot relieve you of this responsibility with indemnification language, however, it specifically permits persons with personal liability to purchase fiduciary liability insurance. Covering yourself with fiduciary liability insurance gives you a piece of mind that you are protected.

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.