Clients: We partner with two companies – Colonial Surety and Naplia – to obtain fidelity bonds for our plans. Some general information about bonds and links to their websites follow. (We will normally do this work for you so this information is provided for the curious do-it-yourselfer.) Using them is very convenient and, if you buy the 3- or 5-year extended coverage, very reasonable. You always have the option to obtain a bond through your own insurance agent.
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Fidelity Bonds
Qualified plans are required to obtain a fidelity bond in order to protect plan assets against losses due to actions of the people who handle plan assets or have other authority over the plan and its assets. This includes loss due to fraud or dishonesty such as theft, embezzlement, forgery, etc… (It does not cover against losses due to the normal ups and downs of the market!)
The amount of the bond is usually the greater of $1,000 or ten percent of the plan assets. The maximum bond required is usually $500,000.
Fiduciary Liability Insurance
Some plans opt to get fiduciary liability insurance in addition to a fidelity bond, however this insurance is optional. Fiduciary liability insurance covers situations in which the fiduciary or fiduciaries are in breach of their fiduciary duties under ERISA.
Get Quotes and Apply Online:
Colonial Surety: 
