The package includes coverages that protect the assets of the retirement plan and the personal assets of the business owners and others involved in the management of the plan.
PRODUCT: Fiduciary-and-Cyber Liability Package
COMPANIES: Colonial Surety Company
BEST RATING: A
AVAILABILITY: Agents can go to Colonial Surety's website to set up an account and start quoting.
FOCUS: Most business owners are unaware of their personal liability exposure for both a breach of fiduciary duty or, more prevalently, cyber risk. Any person who has a role in managing a company-sponsored employee benefit plan, like a 401(k) retirement plan, is considered a fiduciary under the Employee Retirement Income Security Act of 1974 (ERISA) and can be held personally accountable to plan participants and beneficiaries for fiduciary breaches. Further, on April 14, 2021, the U.S. Department of Labor issued a clear statement that it sees cybersecurity as a key fiduciary responsibility for all plan sponsors.
The Fiduciary-and-Cyber Liability Package from Colonial Surety uniquely addresses the personal liability of business owners by protecting their personal assets from claims of fiduciary breach, and cyber liability coverage to safeguard employee personal data and assets against cybersecurity threats.
COVERAGE DETAILS: The package includes coverages that protect the assets of the retirement plan and the personal assets of the business owners and other individuals involved in the management of the plan from exposure in the event of a lawsuit alleging breaches of fiduciary duty. Additionally, the unique cyber liability insurance included in the package protects businesses, as well as the employees' retirement plans, in the event of a cyberattack. Colonial also offers multi-year policy terms for fiduciary and cyber liability insurance, which is not readily available in today's market.
In particular, 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. The cyber liability protections also include defense and indemnity from covered lawsuits by third parties.
TARGET: Any small or medium-sized company that sponsors a retirement plan.
COVERAGE AVAILABILITY: All U.S. states.
COVERAGE TERRITORY: U.S. and its territories, except American Samoa.
CONTACT: Michael Bonfante, business development manager, Colonial Surety; 201-949-1134.
Will Jones is IA editor-in-chief.