ERISA Bond

Guaranteed protection against financial loss.

The ERISA Bond protects employee benefit plans (like 401(k)s, pensions) from losses due to fraud or dishonesty by plan fiduciaries or anyone handling plan assets.

It’s Required by the Employee Retirement Income Security Act of 1974 (ERISA). It’s required for Fiduciaries or anyone who handles funds or property of an employee Benefit Plan. It Protects the employee Benefit Plan and it’s participants.

Under the Employee Retirement Income Security Act (ERISA), your Benefit Plan is required to carry a limit of liability no less than ten (10) percent of “funds handled”. The term “funds handled” has been interpreted to mean the total of liquid assets on hand at the end of your prior calendar (or fiscal) year, AND the income received during the year. When you add these two figures together, ten percent (10%) of the total is the minimum bonding requirement

The ERISA Bond covers the loss of money, securities and other property which the insured shall sustain, to an amount not exceeding in the aggregate the amount stated in the bond, resulting directly from one or more fraudulent or dishonest acts committed by an employee acting alone or in collusion with others. Please review your current limit of liability to be sure that your coverage is appropriate.