What is an ERISA Fidelity Bond?

An ERISA Fidelity Bond is a federally required bond under ERISA Section 412 that protects retirement plan participants from losses caused by fraud or dishonesty (such as theft or embezzlement) by individuals who handle plan funds. The bond protects the plan, not the fiduciary or business.

Why is an ERISA Fidelity Bond required?

The Department of Labor requires an ERISA Fidelity Bond to ensure that retirement plan assets are protected against misuse by those who have access to plan funds. Most plans must be bonded for at least 10% of plan assets, subject to minimums and maximums set by law.

Why do I need Fiduciary Insurance if only the ERISA Fidelity Bond is required?

While an ERISA Fidelity Bond is required by law, it does not protect fiduciaries or the plan sponsor. Fiduciary Liability Insurance covers claims alleging breaches of fiduciary duty, such as imprudent investment decisions, administrative errors, failure to follow plan documents, or inadequate disclosures. The bond protects the plan from theft; fiduciary liability insurance protects you from lawsuits and legal defense costs. Although many business owners (fiduciaries) believe their Third-Party Administrator (TPA) is responsible for this oversight, the risk cannot be transferred to a third party. Ultimately, the fiduciary holds the responsibility over the plan.

Why is Cyber Liability Insurance important for Plan Sponsors?

Retirement plans handle highly sensitive information, including Social Security numbers, banking details, payroll data, and participant account information. As a result, plan sponsors and fiduciaries are increasingly targeted by cyberattacks, data breaches, phishing schemes, and ransomware. The Department of Labor expects retirement plan sponsors to maintain a cybersecurity risk management and incident response program to protect plan data. Colonial Surety Company’s ERISA Bond Packages help support this expectation by including complimentary Cyber Liability Insurance when Fiduciary Liability Insurance is purchased as part of the package.

What is included in an ERISA Fidelity Bond Package?

Colonial Surety Company’s ERISA Fidelity Bond packages combine: ERISA Fidelity Bond (to protect the plan’s assets); Fiduciary Liability Insurance (to protect plan sponsors and fiduciaries personally); Cyber Liability Insurance (to provide protection in the event of data breaches and cyberattacks.) This affordable, bundled solution is available in 1, 2 or 3 year terms locking in your rate as your plan assets grow. In addition it provides comprehensive protection for retirement plan sponsors.

How quickly can I get coverage?

Instantly. ERISA Fidelity Bond packages or standalone ERISA Fidelity Bonds can be quoted, purchased, and issued online within minutes, with documents available for immediate download or filing. Getting started is simple.

ERISA Fidelity Bonds

ERISA fidelity bonds are required by the U.S. Department of Labor to protect employer-sponsored retirement plans against losses caused by acts of fraud or dishonesty.

Already bonded with us? Renew your ERISA bond online in minutes, as is or upgraded to a package with fiduciary and cyber liability insurance. Your documents are ready instantly.

Renew my ERISA bond →

Understanding ERISA Fidelity Bonds

An ERISA Fidelity Bond protects the assets of employee retirement plans against losses caused by acts of fraud or dishonesty. Established under the Employee Retirement Income Security Act (ERISA) of 1974, these bonds serve as a safeguard for pension plans, ensuring that the funds and assets managed by plan sponsors are protected from potential misconduct by individuals who handle plan assets.

Plan Sponsors – Protect yourself with Fiduciary & Cyber Liability Insurance

Fiduciary Liability Insurance safeguards business owners who provide a pension plan on a personal level. Uniquely, our Cyber Liability Insurance covers both the plan and the owner’s business. Under the high standards of ERISA law, a cybersecurity incident can rapidly turn into a fiduciary breach, especially when no insurance or response plan has been put in place. To arm plan sponsors with comprehensive protection, we bundle Cyber coverage with Fiduciary Liability Insurance and the ERISA bond, ensuring all-around protection and compliance.

ERISA Protection Packages

EVERY ERISA Package now includes an ERISA Bond + Fiduciary + Cyber Liability Insurance.

Basic

1-Year ERISA Package

INCLUDES

1-Year ERISA Bond

Fiduciary Liability Insurance

Cyber Liability Insurance

Discounted Premium

Plus

2-Year ERISA Package

INCLUDES

2-Year ERISA Bond

Fiduciary Liability Insurance

Cyber Liability Insurance

Locked in Bond Rate with Extended Coverage

Additional Discount

3-Year ERISA Package

INCLUDES

3-Year ERISA Bond

Fiduciary Liability Insurance

Cyber Liability Insurance

Locked in Bond Rate with Extended Coverage

Greatest Discount

Quote & Purchase

Stand-alone ERISA fidelity bonds are also available.

You can also purchase a 1 or 3-year ERISA bond online. Choose a 3-year term for greater annual savings and extended coverage, which ensures the bond remains U.S. Department of Labor compliant for its entire term.

Should I choose a 1-year or 3-year ERISA bond?

Colonial Surety Company sells stand-alone ERISA fidelity bonds in 1-year and 3-year terms. Our ERISA packages, which combine the bond with fiduciary and cyber liability insurance, come in 1-, 2- and 3-year terms. A 1-year bond suits plans that want to review their coverage every year. A 3-year stand-alone bond gives greater annual savings and extended coverage, which means the bond stays U.S. Department of Labor compliant for its entire term. Our 2-Year and 3-Year ERISA Packages also include extended coverage for the full bond term.

What does extended coverage mean?

Extended coverage means your ERISA bond stays U.S. Department of Labor compliant for its entire term. A stand-alone ERISA bond includes extended coverage only with a 3-year term. Our 2-Year and 3-Year ERISA Packages, which combine the bond with fiduciary and cyber liability insurance, include extended coverage for the full bond term.

ERISA requires every person who handles plan funds to be bonded for at least 10% of the plan funds handled in the previous plan year. The minimum bond is $1,000 and the maximum is $500,000, or $1,000,000 for plans that hold employer securities.

Colonial Surety Company = ERISA Experts

Colonial Surety Company is a leading provider of ERISA Fidelity Bonds, which ensure your retirement or benefit plan is U.S. Department of Labor-compliant with ERISA bonding requirements. We’re licensed in all 50 states and U.S. territories and make it easy to obtain an ERISA Fidelity Bond or package instantly. We also include retroactive ERISA Fidelity Bond coverage for past years when the plan was not covered.

Cyber Liability Insurance is not available in Guam, Puerto Rico, the U.S. Virgin Islands, and the Mariana Islands.