Cyber

Is It a Fiduciary Breach not to Have Cyber Liability Insurance?

07.23.2020

Under ERISA, fiduciaries are subject to the prudent expert standard of care, in which they have to act with diligence, care, and skill in their field. They also owe a duty of loyalty to plan participants. Fiduciaries, or those who act with discretionary control or authority over plan assets, have to work in the interests of plan beneficiaries and participants only.

Equivalently, fiduciaries should take proper care to ensure that plan assets, including plan data, are not stolen via a cyber-attack or data breach. Not taking adequate care and doing what an expert would do to protect plan assets from cyber attack would likely constitute a fiduciary breach.

If you are the fiduciary to a company’s employee benefit plan, you have a fiduciary duty to protect plan participants and the employee benefit plan. You can do this with fiduciary liability insurance and cyber liability insurance offered when you purchase or renew your ERISA fidelity bond with Colonial Surety Company.

If your company has a pension plan, you can secure your company’s plan and the business from a cyber attack with fiduciary and cyber liability insurance. Without cyber liability insurance, fiduciaries cannot effectively stop and remedy a data breach, leaving plan participants and their sensitive information in jeopardy. Protect yourself, your company, and your plan with  fiduciary and cyber liability insurance when you purchase a 2 and 3 year ERISA fidelity, fiduciary and cyber liability bond packages for a 2 or 3 year term from Colonial. 

Cyber Liability Insurance can ensure a prosperous financial future and well-being of your company. Our ERISA bond packages, including an ERISA Fidelity bondFiduciary Liability Insurance, and Cyber Liability Insurance, can help protect your company and its employee benefit plan from catastrophic damages to your brand and its valuable assets. Contact us to learn more about our ERISA packages and cyber coverage.