401(k) and pension plan bonds,
issued the same day you request them.
Required by ERISA Section 412 for every person who handles employee benefit plan assets. Covers theft, fraud, and misappropriation. Bond amount is 10% of plan assets, minimum $1,000, maximum $500,000 ($1M for plans holding employer securities).
- 1-year and 3-year terms available
- Treasury-listed sureties (Circular 570)
- Form 5500 ready
The federal requirement every plan fiduciary must meet.
An ERISA fidelity bond is a surety bond required under Section 412 of the Employee Retirement Income Security Act of 1974. Every person who handles funds or property of an employee benefit plan — 401(k), defined benefit, welfare, profit-sharing — must be covered by a bond that protects the plan against losses caused by dishonesty, fraud, or theft.
The bond is not liability insurance for the fiduciary. It is insurance for the plan, paid for by the plan or the employer, to make the plan whole if a person handling plan assets steals from it. Investment losses, fiduciary-duty breaches, and claims of imprudent plan management are not covered — those require separate fiduciary liability insurance.
ERISA bonds must be issued by a surety listed on the Department of the Treasury's Circular 570 — the list of approved federal sureties. Form 5500 asks every year whether the bond is in place, the amount, and the surety issuing it. Missing or undersized bonds are a common DOL audit finding.
Flat pricing by bond amount and term.
ERISA bonds are underwritten on plan size and assets handled. Credit is not a material factor because the bond covers employee dishonesty with respect to plan assets only.
| Bond amount | 1-year premium | 3-year premium |
|---|---|---|
| $10,000 Small plan minimum | $100 | $250 |
| $100,000 Typical small business 401(k) | $100 | $250 |
| $500,000 Standard statutory maximum | $100–$300 | $250–$700 |
| $1,000,000 Employer securities cap | $300–$600 | $700–$1,400 |
Flat rates. 3-year terms typically save 15–20% versus three annual renewals. Plans holding employer securities follow the higher $1M cap.
Four steps from request to issued bond.
- 01
Plan information
Send us the plan name, employer name, plan year, and the current plan asset total. We calculate the 10% required amount.
- 02
Quote & term selection
Choose 1-year or 3-year term. Pick the bond amount — at least the 10% calculated number, often rounded up for growth headroom.
- 03
Bond issuance
Surety issues on Treasury-listed paper. PDF delivered same-day; original by mail. Multiple plans can ride one blanket bond.
- 04
Form 5500 reporting
Bond number and amount go on Schedule I or H of Form 5500. We keep your bond on file and send renewal notices 60 days before expiration.
ERISA statute, DOL regs, and Treasury listing.
ERISA §412, codified at 29 U.S.C. §1112. Requires bonding of every plan official who handles funds or other property of an employee benefit plan.
At least 10% of the amount of funds handled. Minimum $1,000. Maximum $500,000 per plan, or $1,000,000 for plans that hold employer securities. Calculated at the beginning of each plan year.
Any person who handles plan funds or property — administrators, trustees, investment managers, officers with signature authority on plan accounts. Most plans use a blanket bond covering all handlers.
Only sureties listed on U.S. Department of the Treasury Department Circular 570 can write ERISA bonds. The circular is updated annually by the Treasury Bureau of the Fiscal Service.
Plan sponsors report the bond on Form 5500 annually. Schedule H (large plans) or Schedule I (small plans) asks for the bond number, amount, and surety. Missing or undersized bonds trigger DOL follow-up.
ERISA bonds are routine — until they aren't.
Treasury-listed markets
We only write ERISA bonds on sureties listed in Circular 570. No guesswork at audit time.
Blanket bonds for multiple plans
Employers with a 401(k), profit-sharing, and welfare plan get one bond covering all three. Simplifies Form 5500 across the board.
Renewal-tracked
We flag renewals 60 days out so you never file a 5500 with a lapsed bond. Cheapest bond to buy, but also the easiest to forget.
Other fidelity bonds we write.
ERISA bond questions we answer every week.
How much does an ERISA fidelity bond cost?
ERISA bonds are among the cheapest commercial bonds to buy. A $500,000 bond — the standard maximum for a plan that does not hold employer securities — typically runs $100 to $300 per year for standard plans. Multi-year terms (up to three years) are available at modest discounts. Rates are flat and do not depend on the applicant's credit because the bond covers employee dishonesty with respect to plan assets only.
Who is required to have an ERISA bond?
ERISA Section 412 (29 U.S.C. §1112) requires every person who handles funds or other property of an employee benefit plan to be bonded. That generally includes plan administrators, trustees, investment managers, and anyone with signatory authority on plan accounts. Form 5500 asks for the bond number and amount annually.
How is the required bond amount calculated?
The bond amount must be at least 10% of the plan funds handled, with a minimum of $1,000 and a maximum of $500,000. For plans holding employer securities, the maximum increases to $1,000,000. The calculation is based on the plan's handled funds at the beginning of the plan year. Most plans recalculate the required amount each year when preparing Form 5500.
Does an ERISA fidelity bond cover fiduciary liability?
No. An ERISA fidelity bond covers employee dishonesty — theft, fraud, forgery, and misappropriation by persons handling plan assets. It does not cover fiduciary breaches such as imprudent investments or failure to follow plan documents. For those exposures, plan sponsors buy separate fiduciary liability insurance. The two are different products solving different problems.
Can one bond cover multiple plans?
Yes. A single ERISA bond can cover multiple plans sponsored by the same employer. The bond amount must equal at least 10% of the combined plan assets, subject to the cap. Blanket bonds covering all plans of an employer are common and usually the most economical option for employers with a 401(k), a profit-sharing plan, and a welfare plan.
What does the Department of Labor inspect during a plan audit?
During a DOL plan audit, the auditor will ask for a copy of the current ERISA fidelity bond, verify that the bond amount meets the 10% test, check that the bond lists the plan as insured (or that the bond form satisfies the statutory insured requirements), and confirm that the bond is issued by a surety listed on the Treasury Department Circular 570. Missing or undersized bonds are a common finding.
How quickly can I get an ERISA fidelity bond issued?
Typically same-day. We take a short application — plan name, employer name, handled assets, and bond amount — and issue on standard surety forms. The bond is delivered as a PDF with original execution to follow by mail. Plan administrators can file the Form 5500 with the bond information the same day it is issued.
Get your ERISA fidelity bond today.
Same-day issuance on Treasury-listed paper. 1-year or 3-year terms. Blanket coverage for multiple plans in one bond.