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The easiest way to remember the difference between Fiduciary Liability insurance and a Fidelity bond is that Fiduciary will pay the losses associated with managing money, while a Fidelity bond will reimburse for employee's dishonest acts.

Amount of the Bond. Generally, a bond must be for at least 10% of the amount of funds handled by the covered person in the preceding plan year but not less than $1,000. The maximum required bond generally is $500,000, but for plans like yours that hold employer securities, the maximum is $1 million.

The price depends on the total plan assets, but most insurance companies charge from between $100 and $300 per year for ERISA bond coverage.

Under ERISA, each person must be bonded for at least 10% of the $1 million or $100,000. (Note: Bonds covering more than one plan may be required to be over $500,000 to meet the ERISA requirement because persons covered by a bond may handle funds or other property for more than one plan.)

Q: Are ERISA bonds required by law? A: Technically, yes. ERISA regulations demand that generally all employee benefit plans be covered by an ERISA bond. Interestingly, however, ERISA regulations do not outline any penalties for fiduciaries that choose not to purchase ERISA bonds for their plan.

The median cost of a fidelity bond with a $1 million policy limit, our most popular limit, is $1,054 annually, or less than $90 per month. A fidelity bond with a limit of $100K costs only $280 per year, or less than $25 per month.

An ERISA fidelity bond is a type of insurance that protects the plan against losses caused by acts of fraud or dishonesty. ... The fidelity bond required under ERISA specifically insures a plan against losses due to fraud or dishonesty (e.g., theft) by persons who handle plan funds or property.

The Fidelity Bond must provide coverage equal to 10% of the beginning of the year assets/investments up to $500,000 ($1,000,000 if the Plan holds employer securities) with a minimum of $1,000. The bond must cover the Plan for the entire year.

An ERISA bond covers employees who manage or have fiduciary responsibility for the company's retirement fund. A fidelity bond covers employees who may not be able to receive a bond due to concerns with their personal background or employment history.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232