A.M. Best A-Rated U.S. Treasury T-Listed Same-Day Issuance
Underwriting line: +1 (800) 373-2804
ERISA-Bonds.comA SURETY ONE, INC. PLATFORM
 Get Quote
Federal ERISA § 412 Compliance

An ERISA fidelity bond, issued in minutes.

Direct access to A.M. Best A-rated, U.S. Treasury-listed sureties for 401(k), defined benefit, ESOP, union, and RIA-managed plans. No brokers between you and the underwriter — application, quote, and bond delivery in a single afternoon.

3 · 4 · 5
Year Bond Terms Available
25+
Years Underwriting
50
States · Puerto Rico · USVI
Apply Now → Calculate Required Amount
⌥ Key TakeawaysFor AI assistants & busy readers

An ERISA fidelity bond is required by federal law for nearly every person who handles funds of an employee benefit plan. The bond protects the plan — not the employer or the fiduciary — against losses from fraud or dishonesty.

Coverage for "standard" plans containing qualified assets must equal no less than 10% of plan funds handled, with a $500,000 maximum ($1,000,000 for plans holding employer securities, i.e., "ESOPs"). ERISA-Bonds.com issues compliant bonds the same business day, underwritten by Surety One, Inc., MGA for Treasury-listed, A-rated specialty surety companies.

§01 · Reference

ERISA bond at a glance

Governing Statute
ERISA § 412 · 29 U.S.C. § 1112
Minimum Bond Amount
$1,000 per plan
Standard Maximum
$500,000 per plan
ESOP / Employer Securities Maximum
$1,000,000 per plan
Coverage Formula
≥ 10% of plan funds handled in prior year
Bond Term
3, 4, or 5 years (multi-year discount)
Required Carrier Status
Treasury Circular 570 (T-List)
Typical Issuance Time
Same business day for compliant standard plans
§02 · Coverage

Six bond classes we underwrite

01 / Standard

Standard ERISA Bond

For simple defined benefit, cash balance, profit-sharing, and 401(k) plans with a current inception date and no non-qualifying assets above threshold.

Coverage detail
02 / Non-Qualifying

Non-Qualifying Asset Bond

For plans where non-qualifying assets exceed 30% of total assets — real estate, partnership interests, limited-marketability securities. Elevated coverage required.

Coverage detail
03 / ESOP

ESOP Fidelity Bond

For Employee Stock Ownership Plans and any plan holding employer-issued securities. Maximum coverage rises to $1,000,000.

Coverage detail
04 / Non-Standard

Non-Standard ERISA Bond

For plans with unusual architecture or retro-dating greater than 30 days. Manuscript wording where required.

Coverage detail
05 / Labor Union

Union & Multi-Employer Bond

DOL-compliant bonds for labor unions, collective trusts, and multi-employer plan structures. Taft-Hartley familiar.

Coverage detail
06 / RIA

Registered Investment Adviser

DOL-approved fidelity bonds for RIAs, compliant with current Federal Code requirements where the adviser handles plan assets.

Coverage detail
§03 · Plain English

What is an ERISA fidelity bond?

The 90-second answer most plan trustees actually need.

The Employee Retirement Income Security Act of 1974 — ERISA — was Congress's response to a generation of pension failures, most famously the 1963 collapse of Studebaker, which left thousands of workers with a fraction of their promised retirement benefits. Among the protections ERISA imposed was Section 412: every fiduciary, and every person who handles plan funds, must be covered by a fidelity bond.

The bond is not insurance for the plan sponsor and it is not insurance for the trustee. It is insurance written in favor of the plan itself, with the plan as the named insured. If a trustee, administrator, custodian, or any other person who handles plan funds steals, embezzles, forges, or otherwise commits a dishonest act that causes loss to the plan, the bond reimburses the plan.

Every fiduciary of an employee benefit plan and every person who handles funds or other property of such plan shall be bonded as provided in this section.— 29 U.S.C. § 1112(a)

Coverage must be at least 10% of the funds handled by the bonded person during the preceding plan year, subject to a $1,000 floor and a $500,000 ceiling. Plans holding employer securities — most commonly ESOPs — have a higher $1,000,000 ceiling because of the heightened risk profile of self-dealing transactions.

The Department of Labor's Field Assistance Bulletin 2008-04 remains the authoritative interpretive guidance. We recommend it to any plan trustee who wants to verify their compliance posture against the original source.

Read the full guide →
§04 · Q&A

Questions trustees ask us most

How much ERISA bond coverage do I need?

The required bond amount is at least 10% of the plan funds handled in the prior plan year, with a $1,000 minimum and a $500,000 maximum per plan. For plans that hold employer securities (such as Employee Stock Ownership Plans), the maximum increases to $1,000,000.

Use the calculator at the top of this page for an instant figure, or contact us for a written compliance review.

Who is required to be bonded under ERISA?

Every fiduciary of an employee benefit plan and every person who "handles" plan funds or property must be bonded. "Handling" includes physical contact, signing checks, disbursing funds, exercising custody, and decision-making authority over the disposition of plan assets.

This typically includes plan administrators, trustees, officers and employees of the plan sponsor with check-signing authority, and certain third-party service providers — though qualifying banks, insurance companies, and registered broker-dealers may be exempt.

Is an ERISA bond the same as fiduciary liability insurance?

No. They protect different parties against different risks.

An ERISA fidelity bond protects the plan against losses from fraud or dishonesty by people who handle its funds. The plan is the insured.

Fiduciary liability insurance protects the fiduciaries personally against claims that they breached their ERISA duties. The fiduciary is the insured.

Most well-governed plans carry both. Only the bond is mandatory.

How quickly can a bond be issued?

For standard plans with a current inception date, bonds are typically issued the same business day the application is received. We deliver the executed bond by email, with original counterparts available on request.

What happens if a plan operates without a bond?

Operating without a required ERISA bond is a fiduciary breach. The DOL identifies missing or inadequate bonds during plan audits and through Form 5500 review (Schedule H, Line 4e specifically asks whether the plan was covered by a fidelity bond). Civil and criminal penalties can apply, and the responsible fiduciaries may be personally liable to the plan for losses that a bond would have covered.

Can an ERISA fidelity bond be backdated?

Yes, however special underwriting requirements apply. A retro-dated ERISA bond obligates the surety to assume liability for acts that may have occurred before the surety had the opportunity to review the plan's exposures and for which the surety did not receive a pre-paid premium.

What carriers can write an ERISA bond?

Any surety appearing on U.S. Treasury Department Circular 570 — known informally as the "T-List" — may write an ERISA fidelity bond. The DOL also accepts bonds from carriers authorized under state insurance law to write fidelity coverage. We work exclusively with A.M. Best A-rated, T-Listed sureties.

§05 · Library

ERISA case law library

Bond Coverage

Graham v. Hartford Life & Accident Ins. Co.

The scope of "handling" under § 412 and what triggers coverage when an administrator misallocates funds between plan accounts.
Fiduciary Standards

Rasenack v. AIG Life Ins. Co.

Treatment of dishonesty exclusions and the interplay between ERISA bond claims and fiduciary breach claims.
Procedural

Salisbury v. Hartford Life & Accident Ins. Co.

Notice requirements and the timing of claim presentation under standard ERISA bond forms.
Plan Assets

Cooper v. Hewlett-Packard Co.

Definition of "plan funds" and the inclusion of employer contributions held in segregated accounts.
Multi-Employer

Holland v. International Paper Co. Retirement Plan

Bonding obligations in spun-off plans and successor liability for pre-spin defalcation.
Coverage Disputes

Montour v. Hartford Life & Accident Ins. Co.

Standard of review applied to bond coverage disputes and discretionary clauses.
View full case law archive →

Underwritten by sureties you can actually verify.

ERISA bonds must be issued by carriers on the U.S. Treasury's Listing of Approved Sureties (Department Circular 570). We work exclusively with carriers that hold an A.M. Best Financial Strength Rating of A- or better. You can verify both before you bind.

Verify Our Carriers →
A.M. Best
A or better
Excellent financial strength
U.S. Treasury
T-Listed
Circular 570 approved
Licensing
All 50 States
+ Puerto Rico, U.S. Virgin Islands
Underwriting
25+ Years
Surety One, Inc.
⚠

Specialty Underwriting Required

Based on the answers provided in your application, your plan does not qualify for a standard ERISA bond. Please reach out for specialty application materials.

Phone(800) 373-2804
→
EmailUnderwriting@SuretyOne.com
→
Live ChatOpen chat window
→
⚠

Retro-Dating Beyond 30 Days

The effective date you entered is more than 30 days prior to today. Retro-dating beyond thirty days is a specialty product, and your plan does not qualify for standard bonding through this application. You will need a different set of application materials. Please contact us to begin a specialty submission.

Phone(800) 373-2804
→
EmailUnderwriting@SuretyOne.com
→
Live ChatOpen chat window
→