Do I really need an ERISA Fidelity Bond?

    Yes. Every Fiduciary of an ERISA Plan and anyone else who handles or has authority to handle Plan assets must be bonded. The bond protects Plans from losses due to fraud or dishonesty such as theft, embezzlement or forgery. It does not cover losses due to breach of Fiduciary duty. It is unlawful for any Fiduciary or Plan official to handle Plan assets without being properly bonded. Bond coverage must be at least 10% of Plan assets up to a maximum of $500,000 per Plan. If the Plan holds employer securities, the maximum bond is increased to $1 million.