{"id":357834,"date":"2016-04-04T10:45:32","date_gmt":"2016-04-04T15:45:32","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/wages-and-benefits\/erisa-bond-faqs.html"},"modified":"2025-04-23T14:56:50","modified_gmt":"2025-04-23T19:56:50","slug":"erisa-bond-faqs","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/erisa-bond-faqs.html","title":{"rendered":"ERISA Bond Frequently Asked Questions (FAQs)"},"content":{"rendered":"\n
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ERISA Bond Frequently Asked Questions (FAQs)<\/h1>\n
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\n By Lyle Therese A. Hilotin-Lee, J.D.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last reviewed\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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An ERISA bond is a type of fidelity insurance required by the Employee Retirement Income Security Act of 1974. It protects employee benefit plans from losses due to fraudulent or dishonest acts by those handling plan funds. These bonds are essential for plan fiduciaries, administrators, and other related roles, ensuring compensation for losses up to the bond\u2019s coverage limit. ERISA bonds safeguard the financial integrity of employee benefit plans by covering a range of fraudulent activities, including theft, embezzlement, and wrongful conversion.<\/p>\n\n <\/div>\n\n

Understanding the intricacies of employee benefits plans can be challenging, particularly when ensuring the right protections are in place for plan participants. <\/p>\r\n

One vital element is the ERISA bond, a government-mandated form of insurance that safeguards plan participants from losses that could arise from dishonest or fraudulent acts committed by those who control the plan.<\/p>\r\n

This article answers some frequently asked questions (FAQs) about ERISA bonds. If you need help determining how ERISA and related laws might apply to your situation, consider speaking with an employment law attorney<\/a>. <\/p>\r\n

What Is an ERISA bond?<\/h2>\r\n

An ERISA bond is a type of insurance that protects employee benefit plans against losses resulting from dishonesty or fraud by the person handling plan funds and assets. The ERISA bond, also called a fidelity bond, stems from the Employee Retirement Income Security Act of 1974 (ERISA)<\/a>. This federal law requires ERISA bonds from all individuals and entities handling plan funds or assets.<\/p>\r\n

What Are the Benefits of an ERISA Bond?<\/h2>\r\n

ERISA aims to protect employees enrolled in private industry plans and set responsibilities for those managing these plans. ERISA bonds, or ERISA fidelity bonds, are a kind of insurance developed to protect employee benefit plan participants against losses resulting from:<\/p>\r\n