Colonial Surety, a direct and digital insurer, expanded its fiduciary liability product offering for plan sponsors – businesses that offer retirement plans – with a new, two-part package that includes cyber liability coverage.
The new package offers fiduciary liability insurance for plan sponsors, protecting assets from claims of fiduciary breach, as well as cyber liability coverage to safeguard employees’ personal data and assets against cybersecurity threats. The new product enables plan sponsors to respond to recent updates to The U.S. Department of Labor (DOL) guidance on cybersecurity and data privacy, as well as protect against one of the most significant risks facing businesses today.
“The guidance issued by the DOL in April is a clear statement that it sees cybersecurity as a key fiduciary responsibility for all plan sponsors,” said Wayne Nunziata, president of Colonial Surety. “Businesses now have no choice but to be proactive about protecting the privacy and personal information of their retirement plan participants.”
Nunziata said cybersecurity is both a significant risk and a major blind spot for many 401k plans.
The new fiduciary-and-cyber liability package includes coverage that protects the assets of the retirement plan sponsor, and the personal assets of individuals involved in the management of the plan, from exposure in the event of a lawsuit alleging breaches of fiduciary duty. The cyber liability protection included in the package also protects businesses as well astheir pension plans from covered losses and response expenses in the event of a cyber breach, Colonial Surety said in their release.
The built in cyber liability protection provides coverage for the costs of legal services, computer forensic services, public relations and crisis management expenses, notification services, call-center services, credit-monitoring, identity-monitoring or other personal fraud or loss-prevention solutions. It also includes defense and indemnity from covered lawsuits by third parties.
The new fiduciary-and-cyber liability package is available through Colonial Surety’s online platform, which provides direct access to all of Colonial Surety’s bonding and insurance products for small businesses.
As small businesses grow and thrive in an increasingly complex environment, protecting digital and data assets and safeguarding employees against online threats is just as important as ensuring employees’ physical safety and protecting physical property, Nunziata said. “Cyber liability is just as important as general liability and workers’ comp for organizations that want to protect themselves, their employees, their partners and their customers – and build their businesses with confidence,” he added.
The new fiduciary-and-cyber liability package is available to any company that sponsors a retirement plan and already has an ERISA bond in place. It complements Colonial’s existing ERISA Package, which includes fiduciary and cyber liability coverage, alongside Colonial’s own ERISA bonds.
Colonial Surety was founded in 1930 and 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.
Source: Colonial Surety
Topics Cyber Liability New Markets
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