ERISA expertise
We write ERISA bonds daily for Houston small-business 401(k) plans, profit-sharing plans, and multi-employer plans. We know the DOL\'s audit checklist and how to format the bond so it satisfies a 5500 review on the first pass.
Texas Fidelity & Crime Bonds
Texas fidelity bonds —
Texas fidelity bonds —
protection against
employee theft, done right.
ERISA retirement plan bonds, employee dishonesty coverage, business services bonds for cleaning and home service operators, and financial institution bonds. Fast quotes, transparent pricing, and programs sized for Houston small businesses up to large Texas employers.
- $100+Typical ERISA bond starting premium
- Same-dayApproval on most standard fidelity bonds
- Any creditFidelity bonds are not credit-based
Fidelity coverage done right
- Texas License #5595
- A-rated fidelity carriers
- DOL-compliant ERISA bonds
- Standard ISO fidelity forms
What it is
What is a fidelity bond?
A fidelity bond — sometimes called a crime bond, dishonesty bond, or employee theft bond — is a form of insurance that pays a business or benefit plan when an employee commits a dishonest act: theft, embezzlement, forgery, fraudulent transfer, or similar willful misconduct. Fidelity bonds are written by surety companies, but the mechanics are the opposite of a traditional surety bond:
- Traditional surety bond — you, the principal, are the risk. The surety pays a third party if you fail to meet an obligation, then collects the payout back from you.
- Fidelity bond — your employees are the risk. The surety pays your company (or your retirement plan) directly if an employee causes a covered loss, and generally does not seek reimbursement from your business.
Fidelity bonds come in four practical categories that every Texas business owner should understand:
- ERISA bonds — federally mandated for every person who handles funds of an ERISA-covered retirement plan. The most common fidelity bond in America. Required by 29 USC §1112.
- Employee dishonesty bonds — voluntary first-party coverage that pays your company when an employee steals money, property, or securities from the business.
- Business services bonds — third-party coverage that pays your customer when your employee steals from the customer while working on-site. Standard for Texas cleaning, janitorial, pest control, and home health operators.
- Financial institution bonds — required of banks, credit unions, and non-bank lenders by their regulators. Covers the full range of employee-caused crime loss.
Unlike most surety bonds, fidelity bonds are not underwritten primarily on the applicant\'s credit. The carrier evaluates your internal controls, your industry, the number and role of employees being covered, and your loss history. A business owner with weak personal credit can still buy standard-rate fidelity coverage for their company.
ERISA bonds in detail
Everything Texas employers need to know about the ERISA bond.
The ERISA bond (also called a Section 412 bond) is the most commonly-required fidelity bond in the country — and one of the most commonly-cited failures on a DOL 5500 audit. If your Texas business sponsors a 401(k), profit-sharing plan, pension plan, or similar, you probably need one.
| Rule | Requirement |
|---|---|
| Who must be bonded | Every person who handles funds or other property of an ERISA-covered plan — trustees, officers, employees, third-party administrators. |
| Minimum bond amount | 10% of the funds handled, with a minimum of $1,000. |
| Maximum bond amount | Capped at $500,000 per plan — or $1,000,000 if the plan holds employer securities. |
| Who the bond protects | The plan and its participants — not the employer or the fiduciary. |
| Exempt plans | Fully-funded government plans, church plans that have not elected ERISA coverage, and unfunded pension plans. |
| Penalty for non-compliance | DOL audit findings, fiduciary liability, and potential disqualification of the plan — the bond is one of the most commonly cited 5500 audit failures. |
The ERISA bond protects the plan and its participants — not the employer and not the fiduciary personally. That is why most plan sponsors pair the required ERISA bond with voluntary fiduciary liability insurance, which protects the fiduciary from claims of mismanagement or breach of duty.
Texas fidelity bonds we issue
Types of fidelity & crime bonds.
Every fidelity bond below is one we write for Texas businesses. Each links to a page with coverage specifics, pricing, and a direct application link.
ERISA Bond
10% of plan assets (min $1K, max $500K / $1M)Federally mandated under 29 USC §1112 for every person who handles funds of an ERISA-covered retirement plan.
Retirement plan fiduciaries
Employee Dishonesty Bond
Customer-set ($10K–$1M+)First-party coverage that pays the business directly for losses from employee theft, forgery, embezzlement, or fraud.
Employers of any size
Business Services Bond
Customer-set ($5K–$100K)Third-party coverage that pays the client when a bonded employee steals property from the client's home or premises.
Home & on-site service operators
Janitorial Bond
Customer-setBusiness services bond specifically for janitorial and cleaning crews that work inside client facilities.
Commercial cleaning companies
Financial Institution Bond
Set by regulatorComprehensive employee-crime coverage for federally and state-chartered financial institutions (Form 24, 25, etc.).
Banks, credit unions, lenders
Non-Qualified Plan Bond
Plan-specificVoluntary coverage for plans outside ERISA scope (top-hat plans, certain church and government plans).
Non-ERISA plan sponsors
How much it costs
How much does a Texas fidelity bond cost?
Fidelity bonds are priced on a flat rate per $100 of coverage, adjusted for industry, internal controls, and loss history. Credit is not a primary factor.
| Bond type | Typical premium | Example |
|---|---|---|
| ERISA bond | $0.50 – $2.50 per $1,000 of bond, min $100 | $500K bond → $100 – $300/year |
| Employee dishonesty bond | $0.30 – $1.00 per $100 of coverage | $100K bond → $300 – $1,000/year |
| Business services bond (first 1–3 employees) | $100 – $300/year flat | $10K bond, 2 employees → $150/year |
| Business services bond (each add\'l employee) | $10 – $30 per employee | +10 employees → +$150–$250/year |
| Financial institution bond | Custom-rated | Varies by institution size & risk |
Ranges above are typical for Texas-based fidelity risks. Final pricing depends on your industry, employee count, internal controls, loss history, and the specific carrier. Larger commercial fidelity programs ($1M+ coverage) are rated individually.
How it works
How to get a Texas fidelity bond.
- 01
Tell us what you need covered
For an ERISA bond we need the plan name, total plan assets, and whether the plan holds employer securities. For employee dishonesty or business services bonds, we need your business type, employee count, and desired coverage amount.
- 02
One-page application
Standard fidelity applications ask about ownership, operations, internal controls, and any prior losses. No credit check is required for most fidelity bonds. Most applications take five minutes.
- 03
Same-day approval & bond delivery
Standard fidelity bonds — ERISA, small-employer dishonesty, small business services — are approved and emailed the same day, often within an hour. Larger or higher-risk programs require a brief underwriter review and typically close within 24–72 hours.
- 04
Annual renewal on auto-pilot
Fidelity bonds renew annually. We contact you 30–45 days before renewal, re-quote the coverage, and continue the policy without a gap. Coverage can be raised or lowered at renewal based on your current needs.
Why Surety Bond Houston
Why Texas employers trust us with fidelity coverage.
Programs for service businesses
We bond Houston-area cleaning companies, pest control operators, home health agencies, HVAC, plumbing, and other on-site service providers — the businesses whose customers expect \"bonded and insured\" on the truck door.
Standard ISO forms
Every bond we issue is written on a standard ISO or equivalent fidelity form — the kind that passes customer contract review, DOL audits, and regulatory filing without a fight.
Frequently Asked Questions
Fidelity bond FAQ.
What is a fidelity bond, and how is it different from a surety bond?
A fidelity bond protects a business (or, in ERISA's case, a retirement plan) from losses caused by the dishonest or fraudulent acts of its own employees. A traditional surety bond — like a contractor bond or license bond — protects a third party from the bonded party's acts. Fidelity bonds are functionally more like first-party insurance: the business pays a premium and, if an employee steals, the business collects. Traditional surety bonds pay the third party and then collect back from the principal. Both are written by surety companies, but the mechanics are opposite.
Does Texas require my business to carry a fidelity bond?
There is no general Texas statute requiring private employers to carry employee dishonesty coverage. But federal law (ERISA, 29 USC §1112) requires an ERISA bond for every person who handles funds of a covered retirement plan. In addition, many Texas commercial contracts — cleaning contracts, home-service franchise agreements, healthcare subcontracts, trucking and logistics contracts — require fidelity or business-services bonds as a contract term. Bank and credit union regulators also require financial institution bonds.
What's the difference between an ERISA bond and fiduciary liability insurance?
They are frequently confused. An ERISA bond is mandated by statute, protects the plan (not the fiduciary), and covers only theft or dishonesty — not mismanagement. Fiduciary liability insurance is voluntary, protects the fiduciary personally, and covers claims of mismanagement, breach of fiduciary duty, and imprudent investment decisions. Most sponsors of a 401(k) or similar plan need both.
How much does an ERISA bond cost?
ERISA bonds are inexpensive relative to almost any other surety product. For a $500,000 ERISA bond — the standard maximum for plans without employer securities — premiums typically run $100 to $300 per year. For smaller plans the premium may be under $100. The pricing is flat-rated by bond amount and does not depend heavily on credit, because the bond covers theft risk, not creditworthiness.
How much does an employee dishonesty or business services bond cost?
Employee dishonesty bonds typically run $0.30 to $1.00 per $100 of coverage per year — so a $100,000 bond costs $300–$1,000 annually. Business services bonds (small, per-employee coverage) run $100–$300 per year for the first several employees, with small per-employee add-ons. Larger commercial fidelity programs are priced on a case-by-case basis factoring industry, number of employees, internal controls, and loss history.
Can I get a fidelity bond with bad credit?
Yes. Unlike most surety bonds, fidelity bonds are not underwritten primarily on credit. The surety cares about your internal controls, your loss-prevention procedures, the industry, and the number and role of employees to be covered. A business owner with weak personal credit can still obtain fidelity coverage for their company at standard rates.
Who is covered — and who pays — on a business services bond?
On a business services bond, your company (the bonded contractor) is the principal; the surety pays your client (the obligee) if one of your employees steals from them while on the job. That's why cleaning companies, pest control operators, home health agencies, and other on-site service providers in Texas advertise "bonded and insured" — it reassures the client that theft by a rogue employee is financially covered.
What counts as dishonest acts under a fidelity bond?
Standard fidelity forms cover theft, embezzlement, larceny, forgery, fraudulent transfer, and similar willful acts committed by a covered employee. They do not cover mistakes, negligence, accidental losses, or acts by contractors and non-employees unless specifically endorsed. A conviction is not required for coverage — the carrier investigates and pays based on documented loss from a dishonest act.
Other bond categories
Looking for a different type of bond?
Ready when you are
Get your Texas fidelity bond today.
Free quote, no obligation. Most ERISA bonds under $300/year. Same-day issuance on standard fidelity coverage.