Understand the required obligation.
ERISA generally requires persons who handle plan funds or other property to be bonded, subject to applicable law and exceptions. The bond and any fiduciary liability insurance serve different purposes.
Common uses
- Employee benefit plan fidelity requirements
- Protection against covered fraud or dishonesty involving plan assets
- New plan setup or annual renewal
- Multi-plan bonding arrangements when eligible
Information to prepare
- Plan name and sponsor
- Plan asset amount
- Persons handling funds
- Existing bond details
- Requested bond amount and effective date
Frequently asked questions
Is an ERISA bond the same as fiduciary liability insurance?
No. They address different obligations and exposures. A plan may need the bond and separately consider fiduciary liability coverage.
How much bond coverage is required?
Applicable law and plan facts determine the requirement. Confirm the calculation with qualified plan counsel or administration professionals.
Bond descriptions are general. Availability, underwriting, pricing, indemnity, collateral, form, and delivery vary. The application and issued bond control.