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Get the ERISA fidelity bond your employee benefit plan may need to comply with Department of Labor bonding requirements. Jet makes it fast to quote, purchase, and download your bond for your plan records.
Answer a few quick questions about your employee benefit plan, choose your bond amount, and purchase your ERISA fidelity bond online.
An ERISA bond, also called an ERISA fidelity bond, protects an employee benefit plan from losses caused by fraud or dishonesty by a person who handles plan funds or other plan property.
The bond protects the plan and its participants. It does not protect the plan official personally, and it is not the same as fiduciary liability insurance.
Most ERISA-covered private-sector 401(k), pension, profit-sharing, and funded employee benefit plans need an ERISA fidelity bond when one or more people handle plan funds or other plan property. The required bond amount is generally at least 10% of plan funds handled in the preceding year, with a $1,000 minimum and a $500,000 maximum for most plans. Plans that hold employer securities may require up to $1,000,000 in coverage.
Get a QuoteFederal ERISA bonding rules apply to people who handle employee benefit plan funds or other plan property, unless an exemption applies.
If covered fraud or dishonesty causes a plan loss, the bond is designed to reimburse the employee benefit plan.
The bond is typically not filed as a standalone document with the Department of Labor. Keep it with plan records and report coverage on Form 5500 when required.
ERISA bond pricing is based primarily on the bond amount and term selected. Jet offers low-cost ERISA bond options, and many plans choose a three-year term to reduce renewal work.
| ERISA Bond Amount | Sample 1-Year Term | Sample 3-Year Term | Common Use Case |
|---|---|---|---|
| $25,000 | Starting at $35 | Starting at $87 | Smaller plans or plans with about $250,000 in handled assets |
| $50,000 | Starting at $60 | Starting at $149 | Plans with about $500,000 in handled assets |
| $100,000 | Starting at $88 | Starting at $219 | Plans with about $1,000,000 in handled assets |
| $250,000 | Starting at $120 | Starting at $299 | Plans with about $2,500,000 in handled assets |
| $500,000 | Starting at $172 | Starting at $429 | Common maximum required amount for most plans |
Pricing shown is sample Jet pricing and may vary by state, plan details, coverage structure, term, underwriting requirements, and current rate availability. Plan administrators may choose coverage above the required minimum.
Start the quote, select the ERISA bond amount your plan needs, and see your available term options online.
See My PriceERISA bond coverage is generally calculated from the amount of plan funds or other property handled during the preceding reporting year. For a new plan, the amount can be estimated based on expected contributions and plan assets.
Many plans hold qualified assets through regulated financial institutions such as banks, trust companies, insurance companies, mutual funds, or similar plan custodians.
For these plans, the usual ERISA bond requirement is at least 10% of plan funds handled in the preceding year, subject to the ERISA minimum and maximum limits.
| Total Assets Handled | Estimated Required Bond Amount |
|---|---|
| $500,000 | $50,000 |
| $2,000,000 | $200,000 |
| $25,000,000 | $500,000 standard maximum |
These examples assume the standard 10% calculation and do not account for every plan-specific fact or special asset situation.
Some small plans hold non-qualifying plan assets, such as certain assets not held by regulated financial institutions. These assets can affect audit waiver requirements and may require higher bonding protection in specific situations.
The general ERISA bond rule is based on at least 10% of funds handled, subject to the ERISA minimum and maximum limits. However, if a small plan is relying on the small pension plan audit waiver and non-qualifying plan assets exceed 5% of total plan assets, additional bonding requirements may apply.
If your plan holds real estate, limited partnerships, private investments, employer securities, loans, collectibles, or other non-standard assets, confirm the required bond amount with the plan administrator, benefits counsel, or compliance advisor before purchasing.
ERISA bonding applies to people who handle plan funds or other plan property. A person may need to be covered if they have authority or access that could create a risk of loss to the plan.
Trustees who can direct, manage, transfer, or approve movement of plan assets are commonly covered by the ERISA bond when they handle plan funds or other plan property.
Internal administrators and officers who handle plan funds, control disbursements, or have authority over plan property generally need bond coverage.
Payroll staff, service providers, or other people with control over plan funds may need coverage depending on their role and authority.
Not necessarily. A fiduciary who does not handle plan funds or other plan property is not required to be bonded solely because they are a fiduciary. The bonding requirement focuses on people who handle plan assets.
Get My ERISA Bond QuoteJet's ERISA bond process is built for plan sponsors and administrators who need fast compliance without unnecessary paperwork.
Use the plan name from your Form 5500 filing when available. If the plan is new, use the planned legal name for the employee benefit plan.
Choose the required amount based on the ERISA bonding formula, prior-year plan assets, and whether special asset or audit waiver considerations apply.
Complete Jet's online quote process. Many ERISA bond quotes can be completed without lengthy underwriting.
Your bond can be downloaded after purchase. Keep it with your plan records and report the bond amount when completing Form 5500, if required.
No. The ERISA fidelity bond is typically kept with the plan's records rather than filed as a standalone document with the U.S. Department of Labor.
When the plan completes Form 5500, the bond coverage amount is reported as part of the plan's annual filing information when applicable.
Plan sponsors are often offered fiduciary liability insurance, cyber liability insurance, and ERISA fidelity bonds as if they solve the same problem. They do not. An ERISA bond is the coverage generally required for employee benefit plans because it protects the plan from fraud or dishonesty by people who handle plan funds.
Fiduciary liability and cyber liability coverage may still be useful in some situations, but they do not replace the ERISA bond requirement. If your main goal is satisfying the Department of Labor bonding requirement for a 401(k), pension, or employee benefit plan, the ERISA fidelity bond is the coverage to focus on first.
Jet's article, Fiduciary Liability Coverage Is Not What Your Company Benefit Plan Needs, explains how fiduciary liability, cyber liability, E&O, and business insurance differ from an ERISA fidelity bond.
ERISA bonds and fiduciary liability insurance are often confused, but they solve different problems. A plan may need both, but one does not replace the other.
An ERISA fidelity bond is designed to reimburse the plan when covered fraud or dishonesty by a bonded person causes a financial loss to the plan.
Contact Jet as soon as possible. Claims have notice and proof-of-loss requirements, and early communication helps the surety review the facts and required documentation.
ERISA bond coverage should be reviewed before expiration and at the beginning of each plan year. If plan assets increase, the required bond amount may also increase.
Review the most recent Form 5500 and plan asset information to confirm that the bond amount still meets the ERISA requirement.
Multi-year ERISA bonds are allowed, but plan fiduciaries should still confirm each year that the bond amount and surety remain acceptable for the plan's current requirements.
Not every arrangement needs an ERISA fidelity bond. Exemptions can depend on the type of plan, how the plan is funded, and who handles the funds.
Exemptions can be fact-specific. When in doubt, confirm with the plan administrator, benefits counsel, or compliance advisor before deciding not to purchase a bond.
An ERISA bond is a fidelity bond required for many employee benefit plans. It protects the plan from loss caused by fraud or dishonesty by a person who handles plan funds or other plan property.
People who handle plan funds or other plan property generally must be bonded unless an exemption applies. This can include trustees, administrators, payroll personnel, and certain service providers with control over plan assets.
The required amount is generally at least 10% of funds handled during the preceding year, subject to a $1,000 minimum and a $500,000 maximum for most plans. Plans holding employer securities may require up to $1,000,000.
Yes. Because the bond protects the plan, the premium may generally be paid from plan assets.
No. The bond is typically kept with the plan records rather than filed separately with the Department of Labor. The bond amount is reported when the plan files Form 5500, if applicable.
No. They are related fidelity concepts, but an ERISA bond is specifically written to satisfy ERISA bonding rules for employee benefit plans. A standard employee dishonesty policy may not meet the ERISA requirement unless it is written correctly for the plan.
No. The ERISA bond protects the plan against covered fraud or dishonesty. Fiduciary liability insurance is separate coverage for fiduciary breach or administrative error allegations.
Cyber liability insurance may be helpful for some businesses or plan sponsors, but it does not replace the ERISA fidelity bond requirement. The ERISA bond is focused on protecting plan funds from covered fraud or dishonesty by people who handle plan assets.
Jet's online ERISA bond process is designed to be quick and simple. After purchase, the bond is available for download for your plan records.
These related pages can help if you are comparing an ERISA bond with other fidelity or business protection bonds.
Quote, purchase, and download your ERISA bond online. Need help calculating the bond amount? Call Jet at (855) 516-3348.