What Is an ERISA Fidelity Bond?
An ERISA fidelity bond (also called an employee benefit plan bond or ERISA bond) is a federal requirement under the Employee Retirement Income Security Act (ERISA). This bond protects employee benefit plans—such as 401(k), pension, and profit‑sharing plans—from losses caused by fraud, theft, or dishonesty committed by individuals who handle plan funds.
An ERISA fidelity bond protects plan participants from:
- Theft or misappropriation of plan assets
- Fraudulent handling of employee benefit funds
- Embezzlement or dishonest acts by plan fiduciaries
- Misuse of contributions or plan property
- Violations of ERISA bonding requirements
If your business manages or has access to employee benefit plan funds, federal law requires this bond.
ERISA Fidelity Bond Amounts and Cost
ERISA bond amounts are set by federal regulation and typically equal 10% of plan assets, with a minimum of $1,000 and a maximum of $500,000 (or $1,000,000 for plans holding employer securities).
Your premium depends on:
- Bond amount
- Number of plan fiduciaries covered
- Plan size and asset value
Most ERISA fidelity bonds are inexpensive and qualify instantly with low annual rates.
Who Needs an ERISA Fidelity Bond
You may need an ERISA fidelity bond if you are responsible for handling or accessing:
- 401(k) plan funds
- Pension or retirement plan assets
- Profit‑sharing plans
- Employee benefit trust accounts
- Health or welfare benefit plans
- Any ERISA‑regulated plan involving financial assets
Any fiduciary or employee who manages, controls, or disburses plan funds must be covered.
ERISA Fidelity Bond Requirements & Eligibility
Federal ERISA regulations require:
- Bond coverage equal to at least 10% of plan assets
- Minimum bond amount of $1,000
- Maximum bond amount of $500,000 (or $1,000,000 for employer securities)
- Coverage for every person who handles plan funds
- Annual renewal or multi‑year bond options
The ERISA fidelity bond must be issued by a Treasury‑listed surety company.
How the ERISA Fidelity Bond Process Works
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Secure the Lowest Rate
We match you with the best rate available from A‑rated sureties.
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Receive your bond
Same‑day issuance available for immediate ERISA compliance.
Why Businesses Choose Us for ERISA Fidelity Bonds
- Lowest rates from A‑rated sureties
- Fast approvals for all plan sizes
- Digital delivery for immediate compliance
- ERISA bond specialists
- 100% federal compliance guaranteed
Top ERISA Fidelity Bond Questions Answered
Our most common questions answered efficiently.
Premiums depend on the bond amount and number of fiduciaries covered. Most plans qualify for low annual rates.
Most ERISA fidelity bonds are approved and issued the same day.
It protects employee benefit plans from losses caused by fraud, theft, or dishonesty by individuals handling plan funds.
Once issued, bonds are generally non‑refundable.
No. ERISA bonds protect the plan; fiduciary liability insurance protects the fiduciary. Many plans carry both.
