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ERISA Bonding Coverage and Fiduciary Liability Insurance Protection
ERISA Fidelity Bond
ERISA mandates qualified plans be covered by a
fidelity bond. The minimum bond amounts required must be
for a least 10% of plan assets as of the beginning of
the plan year plus the anticipated contribution for the
plan year or $1,000, whichever is greater. The maximum
bond required is generally $500,000. Every
administrator, officer, and employee of any plan who
handles funds or other property of such plan must be
bonded. The bond protects the plan against loss “by
reason of acts of fraud or dishonesty” on the part of an
administrator, officer, or employee.
Fiduciary Liability Insurance
Fiduciaries have important responsibilities and are
subject to standards of conduct because they act on
behalf of participants in a retirement plan and their
beneficiaries. With the additional focus on fiduciaries
and their responsibilities for ERISA plans, many
employers are discussing fiduciary liability insurance.
ERISA section 410 allows a plan to purchase insurance
for its fiduciaries or for itself covering losses
occurring from fiduciary breach.
We have partnered with Colonial Surety Company, a
leading provider of ERISA/Pension Fidelity Bonds. They
are a national insurance company registered 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. Just click
on one of their links below to get a quote or apply
online for immediate online issuance of a fidelity bond.
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