Fidelity Bonds

An ERISA Fidelity Bond is required by the U.S. Department of Labor to protect retirement plan assets from fraud or dishonesty and applies to most ERISA-governed plans and anyone who handles plan funds. While the bond protects the plan, Colonial Surety Company also helps protect plan sponsors by offering Fiduciary Liability Insurance and supporting the DOL’s cyber response plan requirement with complimentary Cyber Liability Insurance when fiduciary liability coverage is added.

An Employee Dishonesty Bond is a fidelity bond that protects a business from financial loss caused by dishonest acts committed by its employees, such as theft, fraud, embezzlement, forgery, or misuse of company funds or property. If an employee steals money or assets while acting in the course of their employment, the bond helps reimburse the business for the loss.

A Janitorial & Home Service Bond is a type of fidelity bond that protects customers if a cleaning or home service worker steals property, commits fraud, or causes certain damages while working in a client’s home or business. It provides reassurance to customers that the service provider is trustworthy and financially accountable. These bonds are commonly required by clients, property managers, or licensing authorities and are especially important for businesses whose employees work inside private residences or commercial spaces.

A Service Provider Bond is commonly required for professions such as third-party administrators (TPAs), pension professionals, property managers, consultants, and other regulated service providers. In some cases—such as under ERISA—these bonds are required by law to protect the assets of employee benefit plans. The bond ensures accountability and provides financial recourse if the service provider violates legal or contractual obligations.