Fiduciary Liability vs. ERISA Bond: What Is the Difference?
A fiduciary policy may cover certain liability claims alleging breaches of duty; an ERISA fidelity bond protects the plan against specified losses from fraud or dishonesty by covered handlers. One does not replace the other.
DOL directly distinguishes the products: an ERISA fidelity bond under § 412 protects the plan against losses due to fraud or dishonesty by people who handle plan funds or other property. Fiduciary liability insurance addresses a different exposure—claims concerning fiduciary responsibility. ERISA § 410 permits insurance purchases, while § 412 has a separate bonding rule.
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.
Related Coverage
Providers That List This Coverage
Sources
- 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.
- Management and Professional Liability Insurance. Travelers; Select a product: D&O, EPL, ERISA fidelity insurance and fiduciary liability insurance. Accessed 2026-09-25.
