How much does an ERISA fidelity bond cost?
Most insurance companies charge between $100 to $300 per year for an ERISA fidelity bond.
How long are fidelity bonds good for?
Maturity refers to the date on which the principal amount of a bond becomes due and payable. Generally, this ranges from one year to 30 years. Yield is the rate of return an investor expects on the bond if held until its maturity date or call date, based on the purchase price and the interest payment received.
What does a fidelity bond cover?
An ERISA fidelity bond is a type of insurance that protects the plan against losses caused by acts of fraud or dishonesty. Fraud or dishonesty includes, but is not limited to, larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, willful misapplication, and other acts.
How much is a fidelity bond for a 401k?
The minimum bond amount is $1,000 and, in most cases, is not required to be more than $500,000. The plan can purchase a bond for a higher coverage amount, if appropriate. For new plans, estimated plan contributions are used to determine the bond amount but will be at least $1,000.