The Employee Retirement Income Security Act of 1974 (ERISA), requires that business owners sponsoring ERISA qualified plans must maintain certain minimum limits within this coverage. An ERISA Bond is the simplest of all fidelity and/or crime insurance policies as it simply covers employee theft of your insured assets.

Typical crime policies today also include ERISA provisions that extend coverage for the theft of employee benefit assets and other financials. These provisions are designed to comply with ERISA regulations and eliminate the need for a separate ERISA Bond.

Any questions?

Is my business required to carry ERISA coverage?
If you are managing any sort of benefits plan for your employees, this coverage would be required. This Act requires that a fidelity bond be in place to cover those responsible for managing the plan and anyone who handles funds or other property of such plan. These bonds are intended to protect everyone from dishonesty and fraud committed by individuals who are involved. In some rare cases the ERISA coverage is optional, so it is important to confirm that the option is utilized and that adequate limits have been selected.

Does the ERISA legislation mean that I am required to provide retirement plans as a business owner?
No, ERISA does not require any employer to establish a retirement plan. It only requires that those who do have plans meet certain minimum standards. The law generally does not specify how much money a participant must be paid as a benefit.

Would I be protected under an ERISA policy for any decisions I make regarding employee benefits?

Yes, in fact this is an example of risk that would trigger us to recommend this specialty type of policy. Under the ERISA act of 1974 (Employee Retirement Income Security Act), fiduciaries can still be held personally liable for losses to a benefit plan. Should an employee incur a loss as a result of your error, omission, or breach of duty, you want to know that you’re protected.

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