- Licensed in MD, PA, VA, OH and FL
- Electronic bond delivery when available
If your 401(k), pension, or other employee benefit plan needs an ERISA fidelity bond, send us the plan details. We’ll tell you how the bond amount works and what we need for a quote.
An ERISA fidelity bond protects an employee benefit plan against loss caused by fraud or dishonesty, such as theft, by people who handle the plan’s funds or other property.
At least 10% of the funds handled in the preceding year, according to the Department of Labor. The bond cannot be less than $1,000, and it generally does not have to exceed $500,000 per plan, or $1,000,000 for plans that hold employer securities.
Because the 10% figure is based on funds handled in the preceding year, review the bond amount each year as plan assets change.
The Department of Labor says the bond must come from a surety or reinsurer named on the U.S. Treasury’s listing of approved sureties, or from Underwriters at Lloyd’s of London.
We can help you place the bond with an eligible market. Whether a particular plan is exempt is a question for your plan advisor or attorney.
No. An ERISA fidelity bond covers losses from fraud or dishonesty, such as theft. Fiduciary liability insurance covers losses caused by breaches of fiduciary responsibility.
The Department of Labor states that fiduciary liability insurance does not satisfy the ERISA bonding requirement.
You pay a premium for the bond. The premium depends on the bond amount, the plan’s size, and the company issuing the bond.
We cannot give a price until we know the plan details. Because ERISA sets a minimum and a cap on the amount, the bond amount for many plans is simple to calculate once you know the funds handled.
It depends on the market and the plan. Many ERISA bonds involve limited underwriting. Some markets may ask for information about the plan sponsor or the plan.
If your plan or company has special circumstances, tell us up front.
Send us your plan details. The most useful items are:
It depends. A straightforward ERISA bond can often be handled quickly when the plan details are complete. Special plan situations can take longer.
If an auditor or a filing deadline is waiting on the bond, tell us the date when you apply.
If this is not the bond you were asked for, these pages may help.
No. ERISA is a federal law, so the bond requirement does not change by state.
Some plans or plan types may be exempt. Ask your plan advisor or attorney.
Send us your plan details or the notice you received about the bond. We’ll tell you what we need next.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208
