How Much ERISA Bond Coverage Do I Need?
The general rule is at least 10% of funds handled in the preceding plan year, subject to a $1,000 minimum and usually a $500,000 per-person maximum ($1 million for plans holding employer securities). Verify current rules and exceptions with DOL.
DOL’s bonding bulletin describes the basic formula as 10% of the funds handled by each bonded person in the preceding reporting year, with a $1,000 minimum. It states a $500,000 maximum per plan official, increased to $1 million for plans that hold employer securities. A bond covering multiple plans or multiple handlers can require a limit above a simple per-person estimate to protect each plan adequately. The applicable rule and exceptions depend on plan details.
Use the bulletin’s Q35–38 and underlying regulations to calculate the amount for each plan and person; do not use total plan assets automatically as each person’s handled amount. Verify how the bond aggregates limits across plans and whether it names or otherwise identifies every plan. Have a benefits professional or the surety confirm the calculation, exemptions, and adequate limit for the present plan year.
Related Coverage
Providers That List This Coverage
Sources
- Understanding Your Fiduciary Responsibilities Under a Group Health Plan. U.S. Department of Labor, Employee Benefits Security Administration; Who Is a Fiduciary?; What Is the Significance of Being a Fiduciary?; Bonding. 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.
- Field Assistance Bulletin No. 2008-04: Guidance Regarding ERISA Fidelity Bonding Requirements. U.S. Department of Labor, Employee Benefits Security Administration; Q5–10 pp.3–5; Q35–38 pp.18–20. Accessed 2026-09-25.
