One of ERISA’s most important requirements is that plan administrators with fiduciary duties obtain surety bonds. Since these plan administrators have substantial power over employees’ retirement funds, it’s crucial that employees be protected in the event that an administrator commits misconduct. An ERISA bond is a tool that’s intended to provide that protection.
An ERISA Bond is not Fiduciary Liability insurance. The ERISA bond protects the plan’s participants, but a Fiduciary Liability policy protects the administers of the plan.