Insurance Disclosures

ERISAbonds.com is operated by The Southern Agency, a licensed insurance agency. This page explains the agency's role, the role of the surety company, and important limitations of online information. These disclosures should be read together with the bond form and any documents presented during checkout or issued after purchase.

Agency and surety roles

The Southern Agency assists customers seeking ERISA fidelity bonds and provides access to an online application path for eligible transactions. An insurance agency is not the surety company. The bond is underwritten and issued by a surety company holding a Certificate of Authority from the U.S. Department of the Treasury and listed in Treasury Circular 570 as an acceptable surety on federal bonds.

Surety approval matters because ERISA bonding rules generally require a bond placed with a corporate surety that is acceptable on federal bonds. The surety controls underwriting, acceptance, issuance, and the final bond contract. We do not identify an underwriter in this general disclosure because availability can depend on the transaction and issued documents are the controlling source.

Premium and term disclosures

The premium shown is the total premium for the selected term. It is not presented as a monthly price or annualized installment. For example, when the site describes “1-year from $100” or “3-year from $138,” $100 is the total starting premium for the one-year term and $138 is the total starting premium for the three-year term. Actual displayed options depend on state, coverage amount, term, and availability.

A state must be selected before any purchase link is shown. A displayed price or link is not a promise that every risk qualifies, and pricing may be corrected if information is inaccurate or an error is identified. Taxes, fees, or other charges, if any, should be disclosed in the applicable checkout or transaction documents.

External checkout

Applications and purchases are completed on a third-party surety checkout reached through an external link. The checkout—not this informational website—collects application details and payment information. Its terms and privacy practices apply to information submitted there. The bond becomes effective only according to the dates and terms in documents issued by the surety; clicking a link or receiving a calculator estimate does not bind coverage.

What the bond covers

An ERISA fidelity bond is intended to protect an employee benefit plan against loss caused by fraud or dishonesty by covered people who handle plan funds or other property. It does not protect the dishonest person. It is not fiduciary liability insurance and does not, by itself, cover claims alleging imprudent investments, administrative errors, or other breaches of fiduciary duty.

ERISA Section 412 and Department of Labor rules govern the federal requirement. In general, coverage must be at least 10% of funds handled during the preceding plan year, with a $1,000 minimum and a usual $500,000 maximum required amount per plan. The maximum required amount is $1,000,000 for a plan holding employer securities. Exceptions and fact-specific rules can apply.

Your responsibility to review

• Confirm the legal plan name, sponsor, bond amount, term, and effective dates.
• Identify all people who handle plan funds or other property.
• Determine whether employer securities or multiple plans affect the request.
• Read the issued bond and promptly report any discrepancy.
• Recalculate and review coverage for each plan reporting year.

Online tools and educational pages do not replace legal, tax, accounting, or benefits advice. The plan administrator remains responsible for compliance and Form 5500 reporting. For an overview, read the ERISA bond requirements; for an estimate, use the calculator.

Questions and larger risks

Call 800-777-1872 or email bonds@thesouthernagency.com with insurance-process questions. Please contact us for required limits over $500,000, employer-securities questions, or coverage involving multiple plans. Do not send sensitive payment or identity information by email.