WebThe Fidelity Bond protects the plan and its participants, while Fiduciary Liability Insurance typically protects the plan’s fiduciaries from claims of a breach of fiduciary responsibilities. This insurance is not required by ERISA, but many fiduciaries seek to have this coverage for their own protection. Without this coverage, a fiduciary ... WebJan 25, 2024 · An ERISA fidelity bond is a type of insurance that protects a 401 (k) plan from losses caused by acts of fraud or dishonesty (e.g., theft, embezzlement or forgery) …
What Is An ERISA Fidelity Bond? - AdvisorSmith
WebDec 5, 2024 · Employment Law / Wages and Benefits / ERISA Bond FAQs ERISA Bond FAQs By FindLaw Staff Legally reviewed by Aviana Cooper, Esq. Last updated December 05, 2024 What is an ERISA bond? An ERISA bond is another form of insurance for employee benefit plans required by the U.S. Department of Labor. WebApr 6, 2024 · ERISA requires every person who “handles funds or other property” of an employee benefit plan to be bonded with an ERISA Fidelity Bond to insure the plan against losses due to fraud or dishonesty. … leafeon gen 8 learnset
Fidelity Bonds vs Surety Bonds – What’s the Difference?
WebThe Fidelity Bond required by ERISA does not provide coverage for your fiduciary duty to administer your employee benefits programs in the sole best interest of the participants in the plan as required by ERISA. The coverage provided by the Fidelity Bond is described later in this article. WebJan 31, 2024 · In the same way as a general fidelity bond would protect a company, an ERISA bond protects the plan from losses from fraud or dishonesty by plan administrators and others handling plan funds. … WebSep 3, 2024 · Generally speaking, ERISA cannot require more than $500,000 in bonding per plan. However, for plan officials holding employer securities, the maximum required bond amount is $1 million. Both for the … leafeon full art