Every business owner wants to make money while running a thriving company. Innovation? Sure, that too. Unfortunately, as risk management experts point out, cyber criminals have similar goals: making as much money as possible by using ever more inventive approaches to strike. That’s why every business needs a solid response plan.
Response Ready
Even relatively minor cybersecurity incidents are known to create waves of disruption for businesses of all sizes, and with cyber threats increasing, SMBs are particularly at risk of being unprepared to respond quickly and effectively, making breaches more likely to evolve into disasters: “Whether it is the immediate financial impact of a breach… dealing with operational disruption or having to address damage to their reputation,SMBs/SMEs have a lot to lose as a consequence of incidents.” For business survival, experts at Redscan underscore the importance of being prepared with a solid incident response plan “which establishes a strategy to guide your company’s actions following a security incident. Your incident response plan should clearly and comprehensively communicate the actions your business needs to complete after a cyber-attack, covering different scenarios.” Specifically, Redscan advises every small business to have a response plan which addresses these points following a cyber breach:
- Assigning responsibilities to particular people
- Outlining technical protocols and escalation points
- Planning for resource gathering and documentation
- Establishing communications and notification procedures
- Determining a review and testing schedule
Even More To Lose?
Experts are further reminding business owners that those who sponsor retirement plans have the most to lose, and encourage securing cybersecurity insurance that includes response services, noting:
Cyber insurance provides organizations with financial security against damages caused by cyber incidents, which can go beyond revenue loss and include investigation expenses and credit monitoring. Cyber Insurance also provides organizations with legal support during the aftermath of a data breach or privacy violation and underscores a commitment to clients in safeguarding their data.
The Department of Labor (DOL) also considers having a solid cyber breach response plan a key best practice. As plan sponsors across the country work to address the recommendations, many are finding Colonial Surety Company’s efficient and affordable coverage especially helpful. Specifically, for a few dollars a day, plan sponsors can obtain protection for the company, the plan, and themselves, with a Cyber Liability+Fiduciary Liability Insurance package. In addition to providing defense costs and penalty limits up to $1,000,000, if faced with claims of alleged or actual breaches of duty in connection with the employee retirement plan, Colonial’s Cyber Liability+Fiduciary Liability Insurance includes:
- Expert-led response services following a data breach.
- Protection from lawsuits and regulatory actions related to the breach.
- Legal services.
- Computer forensic services.
- Public relations and crisis management expenses.
- Notification services.
- Call Center services.
- Credit and Identity monitoring
Plan sponsors can obtain this comprehensive coverage online in minutes, or even speak to one of Colonial Surety’s knowledgeable ERISA experts for further support. Visit us now, and end your day with coverages–including your cybersecurity response plan–in hand:
Cyber and Fiduciary Liability Insurance
Good To Know
Not surprisingly given the imperative of protecting retirement plans from cyber threats, the DOL has been very active on the issue of cybersecurity, and recently issued updated guidance, with Assistant Secretary for Employee Benefits Security, Lisa M. Gomez, underscoring: “All ERISA covered-plans need to implement appropriate best practices to help protect participants and their beneficiaries from cybercrime and emerging threats. These updates remind plan sponsors and fiduciaries of the critical importance of safeguarding job-based benefits and personal information.”
Additionally, referencing an ERISA Advisory Council report, Gomez has urged plan sponsors to speak with their insurance providers about what their cybersecurity coverage encompasses, and “make sure you are protected there.” Gomez pointed out, for example, “Many employers assume that since the company has cyber liability insurance, they’d be covered in a breach. The fine print in the policy notes that it applies only to the company and not the company in its capacity as a plan sponsor—something not obvious to most.”
Remember, we’re here to help: Colonial Surety’s cyber liability coverage explicitly covers the business and the plan.
Cyber and Fiduciary Liability Coverage Here
Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed and in business all across the country. Serving customers since 1930, we are the trusted source for the pension industry to secure legally required ERISA bonds, fiduciary liability insurance and cyber-liability insurance. We help safeguard plan sponsors, pension professionals and financial advisors — and keep their businesses compliant — with pain-free, efficient, and friendly service every time.