Fidelity Bond for Privately Held Stock

[Guest twoodman]

We are administering a very small plan with two related owners and a few contributing participants. The plan holds privately-held company stock which is in the accounts of the two owners. When they get a fidelity bond, are they required to get a bond to cover the stock even though it is in the owners accounts and let's assume would never be offered to the other participants? Or is a bond covering the other assets of the plan sufficient?

[mming]

I believe the bond requirements are applied to the total plan assets and do not offer relief based on who has what asset in their account. BTW, they should at least "offer" the stock to all participants to minimize liability (but, as I've seen to be the norm, they'll make it sound terribly unappealing so they don't invest in it).