Cyber for Plan Sponsors

StockX Hack Shows Smaller Businesses Are Vulnerable to Cyber Attacks

09.06.2019

The hacks and cyber-attacks you hear about usually involve giant companies like Equifax and Sony. But startup and smaller companies can be vulnerable as well, as shown by the StockX hack.

StockX is an online sneaker selling platform that had 300 employees as of 2018 according to Detroit News. They aren’t located in a giant city. They don’t have hundreds of millions of people’s personal records. They don’t have thousands of employees. And yet they were still hacked.

More than six million records were stolen from the site in May by a hacker. Hackers aren’t only going after giant online stores or national chains. They’re going after startups and small businesses as well.

Cyber attackers won’t discriminate based on the size of your business. If your business doesn’t have a solid cyber defense strategy, you’re vulnerable to attack. The only way to guarantee that your business is protected is with cyber liability insurance.

How can you obtain instant cyber insurance through Colonial?

While the ERISA fidelity bond is required to protect the participants of the plan, it does not, however, protect YOU and your company as the fiduciary.

Colonial Surety Company is a Treasury Listed surety company providing ERISA fidelity bonds packaged with fiduciary liability insurance and cyber liability insurance. Colonial is one of the leading providers of ERISA related products, offering bonds approved by the Dept. of Labor. We make it easy to obtain your bond instantly as well as allowing you to purchase retroactive insurance for the years the plan was not previously covered.

Under ERISA, fiduciaries may be held personally liable for breaches 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 peace of mind that you are protected. Learn how to bundle your ERISA bond and fiduciary liability insurance and cyber liability insurance for a discounted rate.

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.

If you would like to learn more about purchasing an ERISA fidelity bond, or an ERISA fidelity bond package including fiduciary liability insurance or cyber liability insurance, call 888-383-3313 or email ERISADept@colonialsurety.com. Learn more about becoming a Pension Professional Partner here.