Fiduciary Liability vs. Fidelity Bond: What Is the Difference?
A fidelity bond protects against covered dishonest handling losses; fiduciary liability insurance addresses certain benefit-plan duty claims.
Check the bond’s scope, plan-as-protected-party language, covered handlers, limit, and any applicable exemption; a commercial crime policy may not automatically meet ERISA’s requirements.
Separately inspect fiduciary policy definitions, claim timing, limits, exclusions, and defense-cost structure. If the quote offers a “fidelity” product, ask the agent to identify in writing whether it is an ERISA bond, crime insurance, or both and which risk each contract addresses.
Coverage Guides Related to Fiduciary Liability and ERISA Bonds
Which Providers Offer Fiduciary Liability and ERISA Bonds?
Sources for This Answer
- 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.
- Management and Professional Liability Insurance. Travelers; Select a product: D&O, EPL, ERISA fidelity insurance and fiduciary liability insurance. Accessed 2026-09-25.