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Zurich ERISA Fidelity Bond

What is an ERISA Fidelity Bond?

The Employee Retirement Income Security Act of 1974 (ERISA) requires that every fiduciary of an employee benefit plan, and every person who handles funds or other property of such a plan, hold minimum coverage to protect plan participants and beneficiaries from theft and fraud. Pensions, 401(k) plans, deferred-compensation plans and flexible spending accounts are all types of plans that may fall under ERISA. The Department of Labor’s Employee Benefits Security Administration, the Treasury Department's Internal Revenue Service, and the Pension Benefit Guaranty Corporation are responsible for oversight and enforcement of ERISA.

To add a Zurich ERISA Fidelity Bond,  to your customers’ portfolio, contact your Specialty Crime Underwriter or send an email to usz.erisa.bonds@zurichna.com

Download Zurich’s ERISA bond fact sheet
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If you handle employee benefit plan funds, you may need an ERISA fidelity bond

ERISA requires every person who handles funds or property of an employee benefit plan be bonded — and Zurich can help. 
Learn more about why you need an ERISA Fidelity Bond

Why choose Zurich for ERISA Fidelity Bonds?

Zurich’s approach to the underwriting and issuance of ERISA Fidelity Bonds takes two tracks, giving customers flexibility they need for their organization’s needs and compliance requirements:

Zurich ERISA Fidelity Bond Select Application

Features:

  • Liability limits up to $25 million
  • Additional coverages available via endorsement
  • Available in one- or three-year coverage terms
  • Designated agents/independent contractors no longer need to be named
  • Base form definition of Securities includes virtual currency of any kind

Additional coverages include:

  • Fraudulent impersonation
  • Forgery or alteration
  • Computer fraud and funds transfer fraud
  • Investigative expenses
  • On premises and in transit

When to use:

  • Complex, union, employee stock ownership plans (ESOP) and/or multiple plans
  • Limits greater than $1 million
  • Need for more comprehensive or flexible coverage options
  • U.S. Employee Benefit Plan
Download the Zurich ERISA Fidelity Bond Select Application.

Zurich ERISA Fidelity Bond Express Application

Features:

  • Turnkey application designed for plans that seek limits of liability up to $1 million
  • Reduced number of underwriting qualification questions
  • Fast-flow process for quick turnaround from submission to issuance
  • Select from eight liability limit levels; pricing provided in the application
  • Option to remove coverage for designated agents/independent contractors
  • Base form definition of Securities include virtual currency of any kind
  • Available in one- or three-year coverage terms

When to use:

  • Single, non-labor union ERISA plan
  • Liability limits up to $1 million
  • U.S. Employee Benefit Plan
  • Not a multi-employer plan or ESOP
Download the Zurich ERISA Fidelity Bond Express Application.

Strength and compliance

Zurich’s fit-for-purpose ERISA Fidelity Bonds provide coverage for loss of or damage to money, securities or property resulting directly from fraud or dishonest acts committed by an employee. These bonds comply with ERISA Section 412. Additionally, the bond provides broadly defined employee language that can include designated agents/independent contractors.

Zurich’s ERISA bond is underwritten by Zurich American Insurance Company (ZAIC) and carries the A.M. Best & Co. financial strength of Zurich (A+/Stable).*

Zurich’s ERISA Fidelity Bonds are now available for new business and renewals (in approved states).

Frequently Asked Questions

Pursuant to ERISA Section 412, every person who handles funds or other property of an employee benefit plan within the meaning of 29 C.F.R. § 2580.412-6 (i.e., a plan official) is required to be bonded unless covered under one of the exemptions in Section 412. This applies to the fiduciaries and trustees of an employee benefit plan and anyone within your organization who may participate in the management of the plan, including designated agents and independent contractors. However, the bonding requirements under Section 412 do not apply to employee benefit plans that are completely unfunded or that are not subject to Title I of ERISA.
Generally, a plan official must be bonded in an amount equal to at least 10% of the amount of funds he or she handled in the preceding year. The bond amount cannot be less than $1,000, and the DOL does not require a plan official to be bonded for more than $500,000 ($1,000,000 for plans that hold employer securities). For example, if a plan trustee, fiduciary or administrator is responsible for a plan that was worth $1 million during the prior year, the bonding amount for that individual would be $100,000.
An ERISA bond helps protect your employee benefit plans against losses resulting from acts of fraud or dishonesty on the part of individuals required to be bonded. Fraud or dishonesty, as defined in the bond, includes larceny, theft, embezzlement, forgery, misappropriation, or any other intentional fraudulent or dishonest act.
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If you handle employee benefit plan funds, you may need an ERISA fidelity bond

 

*Rating as of January 31, 2023. A.M. Best and S&P Global financial strength ratings are under continuous review and subject to change and/or affirmation. The rating represents the overall financial status of the individual member companies of Zurich in North America, including Zurich American Insurance Company, and is not a recommendation of the specific policy provisions, rates or practices of each issuing insurance company.

Disclaimer

This is intended as a general description of certain types of insurance and services available to qualified customers through the companies of Zurich in North America, and is provided solely for informational purposes. Nothing herein should be construed as a solicitation, offer, advice, recommendation, or any other service with regard to any type of insurance product underwritten by individual member companies of Zurich in North America, including Zurich American Insurance Company, 1299 Zurich Way, Schaumburg, IL 60196. Your policy is the contract that specifically and fully describes your coverage, terms and conditions. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy. Coverages and rates are subject to individual insureds meeting our underwriting qualifications and product availability in applicable states. Some coverages may be written on a non-admitted basis through licensed surplus lines brokers.