Fidelity Bonds & Crime Policies

Confidence Comes With Our
Fidelity Bond/Crime Solution.

Fidelity Bonds & Crime Policies for Complex Risks

The Fiduciary insurance experts at Encore Fiduciary have designed a Crime insurance policy expressly for employee benefit plans. Most employee benefit plans are required to purchase a Fidelity bond to cover losses due to intentional acts to deprive a benefit fund of fund assets. But not all bonds meet the stringent standards of the Employee Retirement Income Security Act (ERISA) as they are designed to address generic risks. And not all policies have the necessary coverage for today’s wired and connected world.

For example, some bonds fail to cover all necessary parties, and other bonds fail to provide full coverage for fraud and dishonesty as required by ERISA. Trustees of benefit plans and their insurance professionals can be confident that Euclid Fiduciary’s Fidelity Bonds/Crime policy has been designed by insurance experts who understand how to comply with complex ERISA and other fiduciary laws.

FIDELITY BONDS

Employee benefit plans governed by ERISA must purchase a fidelity bond to protect against employee theft of assets. Unlike many bonds that do not meet ERISA’s high standards, the Encore fidelity bond provides a broad scope of employee theft coverage and meets the fraud and dishonesty standard mandated by ERISA. Encore also has coverage offerings to protect against third-party liability, like computer theft, funds transfer fraud, and social engineering scams.

Niche

Multiemployer Plans
Governmental Plans (Crime policies)
Non-Profit Employee Benefit plans including VEBAs, Endowments, Church plans, Foundations, 457 and 403(b) plans
For-Profit Plan Sponsors including defined benefit, cash balance, health, 401(k), SEP plans and profit-sharing plans

Product & Program Highlights

Limits Capacity: $10 million on primary or excess basis
Broader Definition of “Employee” for employee theft coverage – includes “any other natural person who handles Employee Benefit Plan assets, whether or not required to be bonded. This is the broadest scope of coverage available.
Coverage is provided beyond standard “employee theft” language to cover “fraud or dishonesty” that meets ERISA standard
No Retention for ERISA plans for employee theft
Cyber Deception/Payment Instruction Fraud coverage is available – a valuable option to protect against “the intentional misleading or deception of any employee through social engineering, pretexting, phishing or any other confidence trick communicated by email, text, instant message, telephone or other electronic means”

Our policy is offered nationally on an admitted basis through Hudson Insurance Company, one of the most dedicated carriers for labor non-profits and employee benefit plans. Hudson has an AM Best rating of “A+” (Superior), Financial Size Category XV ($2 billion or greater), and is a Department of Treasury approved surety.

Resources

We Wrote the Book on Fiduciary Insurance (literally)

We’ve put our fiduciary experience and expertise on paper and online in the “Fiduciary Liability Insurance Handbook,” for you to download and gain insight into why it is so critical that coverage is designed to fit an employer’s or entity’s benefit plan. Obtain your complimentary copy here.

Special Announcement: Euclid Fiduciary is now Encore Fiduciary. Read More Here

Fidelity Bonds & Crime Policies

Confidence Comes With Our
Fidelity Bond/Crime Solution.