What is an ERISA Fidelity Bond?

The Employee Retirement Income Security Act (ERISA) of 1974 sets standards for managing and conduct involved in administering private sector employee benefit plans and plans that invest and manage their assets. The United States Department of Labor administers and enforces the provisions of this act to guard against accusations that property and assets of employee benefit plans are being abused or mismanaged. The ERISA Act states that those who handle plan funds and/or property must be covered by an ERISA Fidelity Bond to protect against that potential abuse and mismanagement of plan funds.

An ERISA Fidelity Bond  is a type of insurance that protects plan members from the potential abuse and mismanagement of plan funds caused by acts of dishonesty or fraud. Fraud and/or dishonesty include charges of larceny, embezzlement, theft, forgery, wrongful abstraction or conversion, misappropriation, and other acts of a similar vein. A plan should be named on the ERISA Bond as the one protected to make sure that it can recover from losses covered by the bond.

Colonial Surety Company offers ERISA Fidelity Bonds  approved by the United States Department of Labor, including in bundled packages with Fiduciary Liability Insurance. Cyber Liability Insurance will soon be offered by Colonial as part of these ERISA Bond packages. Colonial is licensed in all 50 states and U.S. territories and rated “A” Excellent by the A.M. Best Company.

 

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Jaime Boccia

ERISA Department Manager

Randi Ploshnick

New Business Development
Representative, ERISA

Michael Bonfante

Plan Sponsor Representative, ERISA
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