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Why you need an ERISA Fidelity Bond

When filing your annual 5500 form or 401(k) plan, your CPA or Pension Administrator may request you secure an ERISA Fidelity Bond. The Employee Retirement Income Security Act (ERISA) of 1974 went into effect to prevent funds of pension and employee benefit plans from suffering losses due to theft or fraud by the plan administrator.

The U.S. Department of Labor enforces the ERISA Fidelity Bond requirement for plan administrators engaging in the following acts.

  • Disburse, negotiate or move the plan funds

     

  • Negotiate or implement documents for the plan

     

  • Physically handle money, checks or other assets belonging to the plan

Get your ERISA Bond in under 3 minutes

What does an ERISA Bond cover?

A common misconception is the bond provides coverage to the plan administrator. However, an ERISA Bond actually protects the beneficiaries of a pension or employee benefit plan.

An ERISA Bond is a 3-party contract between the obligee, principal and surety.

  • The Obligee – The beneficiaries of the plan. If the plan administrator mishandles the fund and causes loss, the obligee can make a claim against the bond.

  • The Principal – As the plan administrator, you are the principal associated with the ERISA Bond. If the Surety pays out on a valid claim, you’re required to make them whole again.

  • The Surety – The surety is the company you choose to issue your bond. An investigation is carried out when a claim against the bond is made. If the surety finds the claim to be valid, they will payout up to the full bond amount.

As the plan administrator, you can choose to purchase Fiduciary Liability Insurance. While not a requirement, this optional coverage benefits you if you fail to maintain your fiduciary responsibilities.

What is the ERISA Bond amount requirement?

Calculating the bond amount for your ERISA Bond is fairly straightforward. Your ERISA Bond amount needs to be 10% of the plan funds you handled the previous year, but cannot be less than $1,000. If you’re unsure of what to select for your bond amount, we recommend contacting the U.S. Department of Labor to verify your bond amount requirement.

An ERISA Bond protects 401K funds from theft and dishonesty by the plan administrator.

The U.S. Department of Labor requires the plan administrator to have an ERISA Bond when managing funds tied to a 401(k) plan.

How much does an ERISA Bond cost?

Our ERISA Bonds start at low as $100. However, there are a few factors to consider when determining the cost of your ERISA Bond. Your bond cost is influenced by the bond amount you need and the term length you select. Although, the initial cost is more for a bond with a multi-year term, we discount these bonds; saving you money. Plus, your bond won’t need to be renewed for 3 years, instead of an annual renewal.

If your plan funds increase mid-term, you don’t have to pay additional premium because all our ERISA Bonds $500,000 and under include “Inflation Guard”. This means you’ll remain compliant with the U.S. Department of Labor if plan funds increase mid-term with no extra cost to you.

ERISA Bonds with a bond amount of $500,000 or less do not require a credit check. Your credit score does not influence the cost of your ERISA Fidelity Bond.

View instant quotes for your ERISA Bond now

What happens if a claim is made?

The beneficiaries of the pension or employee benefits plan can make a claim against your ERISA Bond if they experience loss due to you mishandling plan funds. If a claim is made, the surety company that issued your bond will conduct an investigation to determine the validity of the claim. Acts of fraud or dishonesty by the plan administrator could be embezzlement, forgery, larceny, misappropriation, theft or willful misapplication, to name just a few examples.

If the surety finds the claim to be valid, they will payout up to the full bond amount to the claimants. The responsibility to repay the surety in full rests on you, as principal of the bond. Ultimately, the ERISA Bond is coverage for the plan beneficiaries, not for you, the plan administrator.

Where to get an ERISA 401(k) Bond

At Surety Solutions, A Gallagher Company, we’ve made the process of getting an ERISA Fidelity Bond quick and easy. Simply select the bond amount you require using the drop down below, then click the “View Quotes” button. You’ll receive instant quotes from top surety companies, including CapSpecialty Surety & Insurance Specialists, The Hanover Insurance Company, Westfield Insurance Company and many more. Choose the quote that best fits your needs and submit your application to buy your bond.

Select your ERISA Bond amount to get free quotes

See what our clients have to say about us on Google:

I bought a surety bond for my business. The name on the application has my middle name on it and the policy didn't. That would or could have created a problem. I wrote to customer service to complain. Well not complain but ask for it to be changed. Since it was Thanksgiving weekend I wasn't expecting to hear back till this week sometime. Well to my surprise it was "Very" Quickly. JD was very helpful and professional. Fixed it then contacted me with the corrected version. Couldn't be happier. " Good Business is Good Business"
Darryk C.
Darryk C.
05:17 01 Dec 20
JP M.
JP M.
01:46 04 Nov 20
Amazing customer service and friendly and informative reps.
Obsesion H.
Obsesion H.
04:45 26 Oct 20
Surety solutions handled my request for a Guardianship Bond professionally, with great care and provided great value to my family. Of all of the insurance companies I contacted for my need, Surety Solutions was by far the most responsive, courteous and knowledgeable. I very much appreciate their fine service!!
Irena S.
Irena S.
03:00 25 Sep 20
The entire staff from Jake to Katrina were more than professional and bent over backwards to meet mine and The State of California's requirements
Kirk G.
Kirk G.
19:10 23 Jun 20
This process could not have been easier! Mr. Chipman sent me an email link and I just followed the steps. I highly recommend Mr. Beau Chipman to anyone who needs this service.
Sharon H.
Sharon H.
23:29 28 Apr 20
Justin R.
Justin R.
23:53 17 Mar 20
Outstanding customer service from Jake and the other folks at Surety Solutions! Shopped my surety bond with other companies and found the best price here by far.
Doss E.
Doss E.
03:42 11 Mar 20
Ed F.
Ed F.
20:00 05 Mar 20
Excellent service, best pricing, immediate communication! Keep up such a great work!!! Thanks!!!
Oksana B.
Oksana B.
06:41 05 Mar 20
The staff is very friendly and on more than one occasion went above and beyond normal customer service to make sure that we were fully taken care of. I would highly recommend this company.
Diana F.
Diana F.
07:20 24 Feb 20
Easy to work with, and extremely fast! I would definitely recommend!
Tiara A.
Tiara A.
03:01 31 Jan 20
Very timely and professional work on providing services to our firm. We are very satisfied.
sherry N.
sherry N.
17:44 22 Jan 20
Great service. No hassle. Great communication.Thank you Cryssi for the excellent service!!!
Ivan R.
Ivan R.
23:52 08 Jan 20
Cryssi B. went above and beyond to get my bond issued in record time and delivered incredible customer service throughout the process. So impressive and refreshing. I am so grateful.
Kerri L.
Kerri L.
03:29 14 Dec 19
Absolutely great to work with!
Katrina and M.
Katrina and M.
17:11 23 Oct 19
Quick and easy process to get my notary bond. Best price and the documents arrived by mail way faster than expected. I highly recommend.
M. G.
M. G.
03:56 23 Oct 19
Great communication, fast and to the point service. Great follow up too.
Pedro R.
Pedro R.
20:58 17 Oct 19
Katrina is very fast and responsive and we got our insurance in few hours! She is the best! We will collaborate again for sure! Thank you! 🙂
Petra G.
Petra G.
16:08 10 Oct 19
They helped so much when I went to my states tag office who denied my paperwork multiple times due to the format. Surety helped me every step of the way.
Lara C.
Lara C.
07:44 23 Sep 19
Super fast and professional service. Couldn't ask for anything better. Thank you guys.
Bill The K.
Bill The K.
15:16 11 Sep 19
Surety Solutions is a fantastic company to work with. I was in a unique situation and was having trouble finding a company willing to underwrite an estate conservatorship bond for me. Surety Solutions took the time to listen to me and shopped around with their underwriters and found someone willing to underwrite the bond. Having to experience the probate system is a major headache; however, Surety Solutions makes sure the bonding portion of it does not have to be 🙂
Tommy M.
Tommy M.
02:15 04 Sep 19
My experience with Surety Solutions agent (Katrina) was professional, solution-driven and responsive throughout the whole process. From applying for a bond quote to purchasing and receiving the bond was simple and efficient. My questions were answered promptly with upbeat attitude and patience. Customer service definitely exceeded beyond my expectations. I would certainly use their service again in the future.
Susan L.
Susan L.
16:07 20 Aug 19
OP
Sandra L.
Sandra L.
17:10 15 Aug 19
This place was actually super helpful, and really speedy! Their blog on their page has nice, easy to follow information, and their staff are super friendly and helpful. I was looking all over for some of this information, trying to weave through weird shady looking sites, and Surety Solutions really is the one to go with. quick, clean, trustworthy, professional. Thanks for all your help!
Audrey K.
Audrey K.
06:20 27 Jul 19
Surety Solutions was able to help me secure a bond and guide me through the probate process in a very friendly and competent way. I really appreciated their speed, efficiency, and knowledge.
Shana O.
Shana O.
18:14 22 Jul 19
I made a mistake in selecting the correct bond and they fixed it with a quick call.Thanks Again!
Jason D.
Jason D.
21:45 10 Jul 19
I worked with Cryssi at Surety Solutions in order to secure a $900,000 conservator bond. Their quote was by far the best out of several companies I requested quotes through ($2,110 vs. $3,500). Cryssi was always very helpful and responded very quickly during business hours and often during after hours via email. I will continue to work with and renew with their company especially if their quotes and customer service remain this excellent. Thank you again! MikeSo just an update to my original post. It was time to renew the conservator bond this year and Cryssi at Surety Solutions made the process extremely streamlined and convenient. I received an email stating it was time to renew the bond with a link to pay online. My rate didn't change at all and it took about 30 seconds to renew my bond. This has been an easy, convenient, and one of the most affordable companies to work with. Some of the best customer service in the market which is sometimes hard to find these days! Thank you again for an affordable quote which was seamless to renew. Thank you Cryssi!
Michael B.
Michael B.
20:24 30 Jun 19
They did everything they said they would & more! Great people excellent people skills polite and quick. Noproblems
Christopher F.
Christopher F.
19:08 24 May 19
I needed a California Certificate of Title Bond so I came to there site. This company was very professional and helpful. I appreciated there live chat options. There website was easy and fast to use. I had to call in and speak to someone and he (Thomas) was very helpful and polite. Thank you guys for a great experience if I ever need another Bond I will be using your company for sure! Keep up the great customer service. Thanks again!
John P
John P
17:59 30 Apr 19
Thank you Thomas and Katrina for the superb professional, fast service you both provided me. I shopped around online for a few days comparing Bond Companies and calling asking questions, and praying. Your website is a cut above the others; your process is quick, straight forth, no tricks nor confusion, but honest online service!I received a Great Rate for my bond compared to other companies, saving me money!Thomas answered my questions upfront with patience & clarity; & Katrina was right on top of email correspondence, my invoice, I received my email bond copy in hours of applying online & hard copy I received next day!Surety Solutions of Gallagher's overall process, Thomas & Katrina made sure, my experience with them was overall stress free, affordable & outstanding!I am still amazed how fast I received my hard copy bond from the time I started to finished, and with FedEx, I had my bond, No errors in my hand the next day! I thank GOD for the stress free & excellent service I received !
Jacqueline S.
Jacqueline S.
13:41 25 Apr 19
Beau was super helpful when I had questions about buying a used car from a seller with an unusual title situation. I have not bought a used car before, so it was very reassuring to talk through my concerns about the situations and the safest ways to move forward. He thoughtfully responded to my inquiries without pestering for my contact info or trying to sell me products - such customer service is hard to find these days! Thank you!
Michael S.
Michael S.
22:52 19 Apr 19
I had been dreading the red-tape of obtaining a surety bond for a lost vehicle title. I had just obtained a quote from another company online and was not pleased with the price. Surety Solutions was less expensive---by far---and their service was outstanding: efficient and polite. The quote was obtained, approval given, and the transaction was complete in a just a couple of hours. I could not be more pleased!
kathy B.
kathy B.
22:20 15 Apr 19
Huge Kudos to Cryssi @Surety Solutions! Thank you for being so responsive and accommodating with helping me get my Bond taken care of. It was a pleasure working with you and your company!Rob with Caliber Auto Sales
ROBERT S.
ROBERT S.
02:42 12 Apr 19
Brent W.
Brent W.
20:01 11 Apr 19
It was a very easy and smooth experience. I got the bond that I needed for a competitive rate. Cryssi was great.
Sheree M.
Sheree M.
15:39 10 Apr 19
Cryssi was my rep. Responds back on a timely manner. She goes above and beyond to insure customer satisfaction! I will do business with Surety Solutions again and recommend to others! Thank you Cryssi! From Bridge City Cleaners!
kimchibator
kimchibator
23:17 02 Apr 19
Cryssi saved the day. We were finally ready to submit our DBO app and realized we had the bond created in our previous business. Expecting a significant red-tape delay, we reached out to Cryssi who managed our little crisis with not only absolute professionalism, but with expedience. She was also so personable!
Deanne R.
Deanne R.
20:31 28 Mar 19
Cryssi & Danielle are great to work with. Very responsive and solution minded. We needed to extend the dates of our coverage and paperwork to show that coverage. They responded quickly and took care of us right away. Thank you!
Mark W.
Mark W.
00:24 28 Mar 19
Working with Cryssi at Surety Solutions is fast and easy!
Love of the Magic V.
Love of the Magic V.
16:31 26 Mar 19
They are quick to help you I will say that!!
Michael L.
Michael L.
17:46 22 Mar 19
Visited and contacted several different surety bond websites prior to seeing this one. Had my bond purchased in less than 10 minutes!!!!! Spoke with Cryssi and she was very professional, answered all of my questions and had my surety bond emailed to me within an hour, will receive the original one tomorrow morning!!!!! So pleased with Cryssi and the ease of obtaining the bond. Lastly, out of all of the places I contacted, this surety bond was $75.00 less than all of the other places that I checked into.
Toni R.
Toni R.
23:26 21 Mar 19
Great Customer Service! Was able to process my request and also review great information they provide - step by step guide amazing! quick and easy- best part of dealing with Title issues- HIghly recommend
CARLOS A.
CARLOS A.
18:14 19 Mar 19
Very,Very helpful and Very,Very fast same day it was like christmas i defiinitly recomend this company
Brandon C.
Brandon C.
02:23 13 Mar 19
I've always had the best experience with this company, and often try to imitate their high level of service in my own company. Cryssi answers my questions quickly and paperwork gets mailed right away. They obviously follow an efficient system that flows throughout the organization. Highly recommend!
Laura C.
Laura C.
18:01 06 Mar 19
I HAD A GREAT EXPIRENCE WORKING WITH THEM
LG T.
LG T.
17:00 04 Mar 19
Great company, really informative and responsive. Thomas was super helpful and patient as he walked me through a million questions that I had. I dealt with a few other less helpful companies before I selected this one. Highly recommend.
Melisande A
Melisande A
17:51 01 Mar 19

Our team is licensed to issue bond in all 50 states. If you have a question, contact us here, send an email to info@suretysolutions.com or call our office at (866) 722-9239. We look forward to issuing your bond!

Additional bond resources

Find answers to frequently asked Surety Bond questions.

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