ERISA Fidelity Bond

In 1974, the Employee Retirement Income Security Act (ERISA) was enacted to regulate most types of employee benefit plans. An ERISA Fidelity bond is insurance that protects the plan from loss due to fraudulent or dishonest acts by those who handle funds or other property of an employee benefit plan, such as 401(k) plan or profit sharing plan.

How Much Coverage Do I need?

  • A plan with qualifying assets is required to be bonded at 10% of the total assets under management.
  • In most instances, the maximum bond amount that’s  required under ERISA with respect to any one plan is $500,000 per plan ($1,000,000 for an ESOP plan).
  • Plans with non-qualifying assets (such as real estate, limited partnerships, gold, etc.) in excess of 5% of the total plan assets, must be bonded at 100%.

How do I purchase an ERISA Fidelity bond?

We have partnered with Colonial Surety Company, a leading provider of Pension Fidelity and Fiduciary Bonds. They are a national insurance company licensed in all 50 states and all U.S. territories, providing insurance products since 1930. They are the largest direct seller of ERISA/Pension Fidelity Bonds in the U.S.  Colonial Surety Company offers Retroactive Coverage for plans that have never had a fidelity bond. This convenient coverage allows the Plan Sponsor to avoid an audit based on their bonding compliance, past and present.

Through Colonial Surety Company’s online bond management system, you can quickly, easily and securely purchase ERISA Fidelity bond coverage in minutes!