ERISA fidelity bonds.
Every state we write.

How much does an ERISA bond cost?

$300 for the full 3-year term at any policy limit from $10,000 to $150,000, which works out to $100 a year. Above that the price steps up with each limit, to $450 at $500,000. The limit alone sets the price, and the application has no credit section. Every price below was read from the carrier’s application on September 28, 2026.

How much coverage does my plan need?

At least 10% of the funds each covered person handled in the prior plan year, with a $1,000 minimum and a $500,000 maximum. The maximum is $1,000,000 for a pooled employer plan or a plan that holds employer securities. A plan that handled $1,200,000 needs a bond of at least $120,000 (29 U.S.C. §1112(a)).

The amount is fixed at the start of each plan year, so a plan that has grown raises its limit or adds a supplemental bond. A plan does not hold employer securities merely because it invests in a broadly diversified fund that does, provided the fund is independent of the employer and its affiliates. The Secretary of Labor may prescribe more than $500,000 after a hearing.

Who has to be bonded, and who is exempt?

Every fiduciary of the plan and every person who handles its funds or other property (29 U.S.C. §1112(a)). Handling is read broadly (29 CFR §2580.412-6), and the law exempts three kinds of plan or institution.

Is an ERISA bond the same as fiduciary liability insurance?

No. The ERISA fidelity bond insures the plan against loss from fraud or dishonesty by the people who handle its funds. Fiduciary liability insurance covers claims that a fiduciary breached its duties. ERISA requires the bond, not the insurance, and many plans carry both (DOL Field Assistance Bulletin 2008-04, Q2).

Is the ERISA bond requirement different from state to state?

The bonding requirement is not. Who must be bonded and for how much is set by federal law and is the same in every state, and ERISA supersedes state laws that relate to a covered plan (29 U.S.C. §1144(a)). State insurance regulation still applies to the bond as an insurance product (§1144(b)(2)(A)), which is why the carrier keeps a separate policy form for most states and a national form for the rest. What does differ is whether a state requires employers to offer a retirement program at all. An employer that sponsors its own 401(k) instead of joining the state program has an ERISA plan, and its people must be bonded.

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