ERISA BOND vs Theft insurance?

[Guest sugar daddy]

A company's insurance policy has an "employee dishonesty" coverage. Do they still need an ERISA fidelity bond?

[Belgarath]

Well, they need a bond that covers the requirements. I believe that it is POSSIBLE for their company policy to have an acceptable "ERISA clause" or "rider" - but in my limited experience with ERISA bonding, this isn't typically how I've seen it handled. Among other things, the plan is the named insured. I believe that FAB 2008-04 addressed this issue in some manner, although I can't recall how specific it was. Easiest thing (I would think) is for plan sponsor to check with the insurance company to see if they are an the list of approved surety providers, and if so, can they combine it or not. And of course, since it is a fiduciary duty, the plan sponsor will want to be thorough in checking all this out.

[GMK]

the plan is the named insured.

"ERISA riders" can do the job, but the coverage must be for the plan, not the company. And no deductibles.

Following Belgarath's "easiest thing" advice will get you to the answer.

[Guest sugar daddy]

Thanks FAB 2008-04 addresses it. Q-3 and Q-31. bond has to be in the name of the plan.