ERISA mandates qualified plans be covered by a
fidelity bond. The minimum bond amounts required must
be for a least 10% of plan assets as of the beginning
of the plan year plus the anticipated contribution for
the plan year or $1,000, whichever is greater. The
maximum bond required is generally $500,000.
Every administrator, officer, and employee of any
plan who handles funds or other property of such plan
must be bonded. The bond protect the plan against loss
"by reason of acts of fraud or dishonesty" on the part
of an administrator, officer, or employee.
Fiduciary Liability Insurance
Fiduciaries have important responsibilities and are
subject to standards of conduct because they act on
behalf of participants in a retirement plan and their
beneficiaries. With the additional focus on
fiduciaries and their responsibilities for ERISA
plans, many employers are discussing fiduciary
ERISA section 410 allows a plan to purchase
insurance for its fiduciaries or for itself covering
losses occurring from fiduciary breach.
Why do I need Fiduciary Liability Insurance?
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