A fidelity bond is required by ERISA to protect against loss of plan assets caused by fraudulent or dishonest acts. It applies for every fiduciary of an employee benefit plan and every person who handles funds or other property of such a plan. A fidelity bond must have a minimum value of 10% of the assets in the plan in order to provide sufficient coverage. For plan sponsors unsure of where to obtain a fidelity bond, we recommend using Colonial Surety Company.
Disclosure: Integrity Pension Services LLC is a referral source for Colonial Surety Company and receives a fee for a successful referral.