Cyber for Plan Sponsors

Why Small and medium-sized enterprises are Expanding Cyber Insurance Budgets

06.25.2020

During this time of uncertainty, industries are particularly vulnerable to cyber breaches. Last year alone, ransomware targets forfeited over $1.3 billion to hackers, including high-profile victims like hospitals, airlines and retailers. However, small businesses are becoming increasingly appealing in the eyes of cyber-criminals–specifically those linked to giant corporations.

Per Beazley PLC, insurance specialists, 60% of ransomeware attacks were succumbed by small and medium-sized enterprises. This means that in this current work-from-home climate with more employees operating from their desktop or mobile device, hackers can easily infiltrate to harvest any personal information poorly protected or not at all, including credit cards, social security numbers and email addresses.

Therefore, business leaders must invest in a greater cybersecurity plan and add as many layers of protection as needed to safeguard themselves against a swarm of malicious attacks.

If you sponsor an employee benefit plan, you are subject to ERISA law which states you must bond the plan with an ERISA bond to protect your employee’s and the plan. What’s more, you will now be named fiduciary as a plan sponsor, and thus face liability should an actual or alleged claim arise. Fiduciaries must protect the plan and it’s participants from a Cyber-attack.

Good news, Colonial Surety Company ha the answer to all three areas of needed protection. Our ERISA bond packages, which include 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.