What is an ERISA fidelity bond?

Under Department of Labor regulations, your retirement plan must maintain an ERISA Fidelity Bond. A fidelity bond protects the assets in the plan from misuse or misappropriation by the plan fiduciaries. The bond must be equal to 10% of the value of the total plan assets, with a minimum bond value of $1,000 and a maximum bond value of $500,000.


Failure to carry a bond may result in a DOL investigation and/or liability exposure for the individuals responsible for your 401(k) plan. There are serious consequences for not purchasing and maintaining a sufficient ERISA fidelity bond. Not having this required coverage can be a red flag to the DOL that they need to take a closer look at the plan. You are not only at risk for a DOL audit, but there are citations associated with not having this required coverage.

As a convenience to you, TRA partnered with Colonial Surety Company, a national online insurance company that is U.S. Treasury listed and licensed in all states and territories. As experts in all aspects of ERISA regulations, Colonial Surety Company will ensure that you are properly bonded and that your bond is renewed prior to expiration so that your 401K Plan Administrator remains in compliance.

Colonial Surety’s Commitment

Since 1930, Colonial Surety Company has been a trusted source of fidelity and surety bonds. The company is rated Excellent by A.M. Best Company, and enjoys positive reviews of its exceptional financial history, service and support systems. Colonial Surety Company is committed to providing you with innovative products and services.

The following links allow Plan Sponsors and Financial Advisors to instantly obtain ERISA bonds and other pension service products directly from Colonial Surety Company. All bonds are processed on-line allowing for complete paperless transactions.


  • ERISA/Fidelity Bonds & Fiduciary Liability Insurance – immediate issuance
  • Fiduciary Liability Insurance Coverage – endorsement to ERISA/fidelity bond which protects plan sponsors and trustees from personal liability for defense costs and penalties if they are sued for fiduciary decisions
  • Extended Fiduciary Protection – protection for any and all individuals involved with the administration of the plan


The Retirement Advantage is not affiliated with Colonial Surety Company. Any bonds purchased from Colonial Surety are the responsibility of Colonial Surety. This service is provided as a convenience. The Retirement Advantage does not endorse Colonial Surety and recommends you compare other providers prior to purchasing a bond.