Former Equifax CIO Jun Ying has been sentenced to four months in prison for insider trading. Ying was found to have sold Equifax stock after the famed data breach was discovered but before the public was aware of said breach. The U.S. Department of Justice found that Ying looked to see the impact data breaches had on other company’s stock prices and, after completing that research, sold Equifax stock before the data breach was made public. He earned almost $1,000,000 from his sale of stock done after his research told him what was likely to happen to Equifax’s stock once the breach was known.
Not only was the information of more than 150 million people leaked in the massive data breach, but one of the company’s chief executives was sent to prison over this. That is why you and your company should make sure that you are covered in case a cyber attacker comes for your company. If you are able to manage and contain a breach, there will not be nearly as much damage to your company. Cyber liability insurance allows you to work with professionals to learn how to react and contain a data breach so what happens to Equifax does not happen to you.
Many large companies like Equifax are large enough to recover from data breaches, but a cyber attack’s blow could very easily prove fatal to a small business. Unless you have cyber liability insurance.
Where can you purchase instant cyber liability insurance?
Colonial Surety offers an included cyber liability insurance endorsement for our ERISA fidelity bond packages with fiduciary liability insurance to best protect your plan against a cyber attack.
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.