Protecting Union Funds with Customized Bonds.

Bonds for Labor Organizations

The Labor-Management Reporting and Disclosure Act of 1959 (LMRDA) in part is designed to protect union funds and assets from losses caused by improper uses. Section 502(a) under the law requires union officers and employees to be bonded to ensure that unions will be protected against losses caused by an act of fraud or dishonesty by a union officer or employee.

The minimum bonding amount for each covered officer or employee is 10 percent of the funds handled by the official and his or her predecessor, if any, during the preceding fiscal year. For a new union, the bond must be at least $1,000 for a local union and not less than $10,000 for other unions or for a trust.

The maximum bond required for any one person in any one union or trust is $500,000. However, a person who handles funds for more than one union or trust may be required to be bonded for up to $500,000 for each union or trust.

Encore Fiduciary provides bond solutions for labor unions for financial losses caused by fraudulent or dishonest acts by officers or employees, such as theft, embezzlement, or forgery.


A Fiduciary Liability insurance policy is designed to protect plan trustees, other fiduciaries and the employee benefit plan against claims alleging breach of their fiduciary duties to the plan or claims alleging they committed an error in the administration of the plan. The policy provides two important basic benefits: defense and indemnity.


Product & Program Highlights

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.

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.

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