ERISA mandates qualified plans be covered by a fidelity bond. The minimum bond amounts required must be for a least 10% of plan assets as of the beginning of the plan year plus the anticipated contribution for the plan year or $1,000, whichever is greater. The maximum bond required is generally $500,000.
Every administrator, officer, and employee of any plan who handles funds or other property of such plan must be bonded. The bond protect the plan against loss “by reason of acts of fraud or dishonesty” on the part of an administrator, officer, or employee.