The Employee Retirement Income Security Act (ERISA) sets rules and standards of conduct for private sector employee benefit plans and those that invest and manage their assets.
An ERISA fidelity bond is a type of insurance that protects the plan against losses caused by acts of fraud or dishonesty.
Fraud or dishonesty includes, but is not limited to, larceny,
theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, willful misapplication, and other acts.
Deductibles or other similar features are prohibited for coverage of losses within the maximum amount for which the person causing the loss is required to be bonded.
In addition, it is important to make sure that the plan is named (or otherwise specifically identified) as an insured party on the bond so that the plan can recover losses covered by the bond.
How Much Does an ERISA Bond Cost?
Generally, each person must be bonded in an amount equal to at least 10% of the amount of funds he or she handled in the preceding year.
The bond amount cannot, however, be less than $1,000, and the Department cannot require a plan official to be bonded for more than $500,000, or $1,000,000 for plans that hold employer securities. These amounts apply
for each plan named on a bond.
Because of the wide range of variables, without having your specific onformation and bonding requirements it's impossible to provide exact pricing. You can get a precise quote by filling out an ERISA Bond application.
Every person who “handles funds or other property” of an employee benefit plan is required to be bonded unless covered under an exemption under ERISA.
ERISA makes it an unlawful act for any person to “receive, handle, disburse, or otherwise exercise custody or control of plan funds or property” without being properly bonded.
Fidelity bonding is usually necessary for the plan administrator and those officers and employees of the plan or plan sponsor (employer, joint board, or employee organization) who handle plan funds by virtue of their duties relating to the receipt, safekeeping and disbursement of funds.
How to Get an ERISA Bond FAST!
Applying for an ERISA Bond is not difficult, as we’ve simplified the process for you into easy to understand steps, which can be found on our ERISA Bond application.
Finally, if you would like to speak to a live customer service representative to walk you through the process of applying and getting approved for an ERISA bond today, we are here to answer all questions.
Our professionals are committed to easing the process for you. call us at (800) 921-1008, Live Chat with us below, contact our Bond Manager at Bonds@BFBond.com