ERISA Bond vs. Fiduciary Insurance: What Is the Difference?
An ERISA bond protects the plan against specified dishonest handling losses; fiduciary insurance may cover liability claims over plan management.
The bond and liability policy pay for different events. A plan may need both, and neither automatically replaces the other.
When reviewing a quote, ask for the actual bond and liability forms. Confirm the bond’s protected plan, handlers, amount, and compliance with any ERISA exception. For the liability policy, check covered plans and people, wrongful-act wording, defense expenses, exclusions, limit, retention, and reporting terms. If someone says one contract satisfies both needs, ask them to point to the specific clauses that provide each protection.
Coverage Guides Related to Fiduciary Liability and ERISA Bonds
Which Providers Offer Fiduciary Liability and ERISA Bonds?
Sources for This Answer
- 29 U.S.C. § 1110: Exculpatory Provisions; Insurance. Office of the Law Revision Counsel, U.S. House of Representatives; 29 U.S.C. § 1110(b)(1)–(3). Accessed 2026-09-25.
- Field Assistance Bulletin No. 2008-04: Guidance Regarding ERISA Fidelity Bonding Requirements. U.S. Department of Labor, Employee Benefits Security Administration; Q2 pp.2–3. Accessed 2026-09-25.
- Fiduciary Liability. Travelers Casualty and Surety Company of America; II.D,J–L pp.2–3; II.A p.1; II.V p.5; Header p.1; II.M p.3; III.A.6–8 pp.5–6; II.M.2 p.3; III.B.1 p.6. Accessed 2026-09-25.