Fiduciary Liability vs. ERISA Bond: What Is the Difference?
Fiduciary insurance may cover certain benefit-plan liability claims; an ERISA bond protects the plan from specified fraud or dishonesty losses.
DOL distinguishes the products. A bond may be required for plan handlers even when the organization buys fiduciary liability insurance.
For the bond, identify every handler and confirm the plan is protected for the required amount and that the surety qualifies. For liability insurance, verify insured people and entities, scheduled plans, covered wrongful acts, limits, defense arrangements, and exclusions. A crime policy, corporate fidelity bond, or liability policy should not be assumed to satisfy ERISA’s bond requirement without checking its form against DOL’s rules. Keep evidence of both protections separately.
