Erisa vs Fidelity

[Redbull]

What is the difference between an Erisa bond and a fidelity bond?

[marietta68]

What is the difference between an Erisa bond and a fidelity bond?

An ERISA bond is written to protect the employee benefits plan from loss due to a variety of risks, including employee dishonesty, failure to enroll a new employee, etc. The bond is required by the US Dept of Labor in the amount of 10% of plan assets. The plan itself is the beneficiary in the event of a claim. However, loss experience on this line of coverage has been very favorable, and in many cases, an endorsement to the company's crime coverage to add the plan(s) is added for no additional charge (assuming the coverage amount is sufficient to cover 10% of plan assets).

A fidelity bond covers a person or a position for the benefit of the employer or the public entity for whom the person provides services that include handling funds (or other goods) belonging to the employer. In recent years, the obligation is usually handled by Employee Dishonesty Coverage, however. The policy would reimburse the employer in the event of a loss, while the ERISA bond would reimburse the employee benefit plan(s), but again, the ERISA bond is written for just 10% of the plan value.