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.
