We frequently mention ERISA bonds in our communications with plan sponsors. An ERISA fidelity bond insures the plan against losses due to fraud or dishonesty by those who have access to those funds. Because such losses are rare, the cost of an ERISA bond is quite reasonable. The Department of Labor has published answers to common questions, which may be found on the DOL website.
For an exhaustive list of the companies that are approved to issue ERISA bonds, visit the Department of the Treasury’s Listing of Certified Companies.
Note that the ERISA fidelity bond is not the same as fiduciary liability insurance, which protects a fiduciary from losses caused by breach of fiduciary responsibility.
Please contact your IAI consultant if you have questions about bond coverage for your plan.