What is an ERISA bond?
An ERISA bond is a type of fidelity bond that helps protect 401(k) and retirement plans from the risk of fraud. The Employee Retirement Income Security Act (ERISA) was enacted in 1974 and regulates most types of employee benefit plans it covers. ERISA bonds protect the retirement plans, participants and beneficiaries from dishonesty and fraud committed by individuals who are associated with them. The Act requires that an ERISA fidelity bond be in place to cover the fiduciary and anyone associated with the management of the covered plan.
How much coverage is required?
The amount of coverage necessary for each plan must equal 10 percent of the funds, with a minimum limit of $1,000 per plan and a maximum limit of $500,000 per plan. Plans holding employer securities are required to carry a maximum limit of $1,000,000.
How can you get coverage?
TDIC Insurance Solutions has partnered with Travelers, a leading provider of ERISA bonds, to provide coverage to dental practitioners. To begin the process of protecting your assets, simply fill out the application linked below and fax it to 866.240.9817 or email to [email protected].
If you would like to learn more about ERISA bonds, please call us at 800.452.0504. We’re happy to help.