ERISA Bond
Bond Details
ERISA Bond – $10,000-$500,000 Bond Amount – Bond Cost Varies
Overview
Individuals who handle funds or property of an employee benefit plan must hold an Employee Retirement Income Security Act (ERISA) bond.
ERISA bonds, sometimes referred to as 401(k) fidelity bonds, protect the plan, its participants, and beneficiaries from losses due to theft, embezzlement, forgery, misappropriation, and other dishonest acts.
Insured: Employee benefit plan
Insurer: NNA Surety
Bond Amount: $10,000-$500,000
Bond Cost: Varies (average cost is close to 1% of bond liability amount)
Bond Term: 3 years
Cost of an ERISA Bond
The current total plan assets determine your ERISA bond amount. By law, each plan must have a bond of at least 10% of the previous year's funds with a maximum of $500,000.
Your ERISA bond automatically includes inflation guard at no extra cost, increasing your coverage to meet ERISA requirements during the three-year term. This endorsement is only valid if the bond initially met the 10% minimum requirement.
How ERISA Bonds Work
An ERISA bond helps protect the plan’s participants and beneficiaries from financial loss should the plan official mishandle the funds. If a claim is made against a plan official for theft or other dishonest act, the surety company will investigate the claim to confirm its validity.
If the claim is valid, the surety will compensate the claimants up to the bond policy amount and the plan official must reimburse the surety for any damages paid out.
Get Your ERISA Bond With Us
NNA Surety can help you meet ERISA bonding requirements today. To get your ERISA fidelity bond, have the following information ready when you complete our form:
- Plan information: Name of employee benefit plan, address, and contact information
- Plan sponsor information: Current total plan assets, address, and business name
If you have any questions about the process, call us for more information.