ERISA Fidelity Bond (Required by Law)
A fidelity bond is required under ERISA for nearly every retirement plan. It protects the plan from losses caused by fraud or dishonesty by individuals who handle plan assets. Without one, the plan is not in compliance with federal regulations.
Fiduciary Liability Insurance
While not required, this coverage protects individual fiduciaries, such as business owners trustees, or plan committee members, from personal financial liability if accused of mismanaging plan assets or breaching fiduciary duties under ERISA.
Cyber Liability Insurance
As data breaches and ransomware threats grow, this optional coverage helps protect your business from the financial and reputational damage of cyberattacks involving participant data or plan operations. Even is you use a recordkeeper, as a plan sponsor you still hold and transmit sensitive information (names, Social Security numbers, account balances, payroll data, etc.) to services providers via:
If data is intercepted, misdirected, or breached while in your possession or during transmission, you could be held liable.
You recieve $50,000 of Cyber Liability free when you buy a 1-3 year package with both your ERISA Bond and Fiduciary Liability Insurance!
| ERISA Fidelity Bond (Required) | Fiduciary Liability Insurance | Cyber Liability Insurance | |
|---|---|---|---|
| Purpose | Protects the retirement plan from theft, fraud, or dishonesty by anyone who handles plan assets. | Protects individual fiduciaries from personal financial liability for breaches of fiduciary duties under ERISA. | Protects the organization from cyber events that threaten participant data held or transmitted by the organization or other cyber events that cause financial harm. |
| Coverage Highlights | -Fraudulent or dishonest acts -Theft or embezzlement -Applies to anyone handling plan funds | -Breach of fiduciary duty -Mismanagement of assets -Errors in oversight or plan administration | -Data breaches and privacy violations -Ransomware and extortion -Business interruption -Regulatory fines |
| Who It Protects | The retirement plan itself | Named fiduciaries, trustees, officers, and committee members responsible for managing the plan | The employer/plan sponsor, executives, and employees |
| Requirement Status | Mandatory under ERISA for most plans | Optional but critical for fiduciaries to protect personal assets | Optional but highly recommended You recieve $50,000 of Cyber Liability free when you buy a 1-3 year package with both your ERISA Bond and Fiduciary Liability Insurance! |
We’ve made it easy to protect your plan and stay compliant. Request a quote or purchase directly from Colonial Surety Company with the link below:
Our offices will be closed December 24-26 and January 1.
We wish you and yours a warm and safe holiday season, Benefits² Administrators
