Due dates are fast approaching. Here is a helpful snapshot to make sure you are in compliance and avoid penalties. Get the scoop on efficient, effective and affordable cyber and fiduciary liability protection designed especially to help small businesses too.
February’s To Do List?
Groom Law Group reminds plan sponsors to hit these deadlines:
- February 10, 2022 – Pension withholding deadline if you made deposits on time in full payment of the taxes for the year.
- February 14, 2022 – Quarterly benefit statement, including plan fees deducted, due to participant-directed defined contribution plan participants for 4th quarter 2021 (for calendar year plans).
- February 28, 2022 – Form 1099-R IRS paper filing deadline.
Cybersecurity Failures and Fiduciary Breaches?
In 2022, a “tidal wave” of compliance actions is likely to be devastating to small businesses who have not been able to keep up with the cybersecurity guidance of the U.S. Department of Labor (DOL)—that’s the prediction of industry experts. For example, failure to monitor the cybersecurity procedures and protocols of recordkeepers and other service providers puts plan sponsors at risk of a fiduciary breach. As Bloomberg Law reports:
Many small U.S. retirement plan sponsors aren’t evaluating the tech firms they’ve hired to protect user data even with recent U.S. Labor Department guidance and stepped-up enforcement…Most small-to-mid-sized plans still don’t have formal written processes for overseeing their recordkeepers’ fraud prevention practices. As the DOL ups its cybersecurity enforcement and litigation emerges, plan fiduciaries become solely responsible for sensitive information about their participants falling into the wrong hands under someone else’s watch.
Colonial Surety has an affordable fiduciary-and-cyber liability insurance package, created especially to help small businesses with the challenges at hand. The fiduciary liability insurance protects the personal assets of retirement plan sponsors from exposure in the event of a lawsuit alleging breaches of fiduciary duty. The cyber liability insurance uniquely included in our plan sponsor packages protects businesses and their retirement plans from covered losses and response expenses in the event of a cyber breach.
A cyber breach is not always a disaster but mishandling it is. That’s why Colonial’s Cyber Liability Insurance covers assistance at every stage of incident investigation and breach response — helping small businesses to navigate the legally obligated steps which must be taken in the event of an attack. Additional highlights of the plan include legal services, access to computer experts, call center services, customer notifications and more.Liability protection in the event of covered lawsuits or regulatory actions due to a data breach? That’s included too.
Colonial’s insurance packages for plan sponsors are available online, in minutes. Our multi-year packages provide the greatest convenience and value, ensuring continuous compliance and protection. If you need to obtain or renew your DOL required ERISA bond, you can simply add Fiduciary and Cyber Liability Insurance on right here now.
Already have your required ERISA bond? No problem—now you can take advantage of our Fiduciary-Cyber package right here: Fiduciary with Cyber Liability Insurance.
Colonial Surety was founded in 1930 and brings deep experience and market expertise to every product and every customer relationship. Colonial Surety gives its customers the assurance that they, their businesses, and their clients are safeguarded with the right surety and insurance products at all times.
Colonial Surety makes it easy for a wide range of industries and professions to buy the bonds and insurance products they need. Colonial Surety is a direct and digital insurer offering products through an online platform supported with exemplary customer service. The company gives customers a simple, direct, and instant service that takes the pain out of buying insurance and bonds. Colonial Surety is licensed in every U.S. state, rated “A” Excellent by A.M. Best, and listed by the U.S. Treasury as an approved surety.