Colorado ERISA Bond (1 Year)
Overview
Plan fiduciaries who handle assets in a Colorado employee benefit plan are required by federal law to carry an ERISA fidelity bond. This bond protects plan participants — not the business owner — against losses caused by fraud or dishonesty committed by anyone who handles plan funds. Every covered plan official must be bonded for at least ten percent of the plan assets they handle, subject to federal minimums and maximums. Buying this bond is a compliance requirement, not an optional risk-management choice.
Who Needs This Bond?
Your Colorado business sponsors a 401(k), pension, profit-sharing, or other ERISA-covered employee benefit plan, and you or your employees touch those plan assets. Any plan official who handles funds — writing checks, transferring assets, signing off on distributions — must be individually covered by this bond. This includes plan trustees, administrators, and officers who exercise direct control over plan money. If your plan is subject to ERISA and a plan official handles assets, the bond is mandatory.
What is this Bond For?
This bond exists to protect plan participants if someone with fiduciary access commits fraud, theft, or dishonest acts against the plan. It is not liability coverage for poor investment decisions or administrative errors — it covers deliberate wrongdoing by a plan handler. A successful claim reimburses the plan itself, returning stolen or misappropriated funds to the benefit of employees enrolled in the plan. The U.S. Department of Labor enforces the bonding requirement as part of its ERISA oversight.
When is it Required?
Coverage must be in place before any plan official handles plan assets — there is no grace period under the federal requirement. A lapse in bonding while a fiduciary continues to touch plan funds puts the plan out of compliance immediately. The one-year term on this bond means you must renew on time every year to maintain uninterrupted coverage. Do not wait until a DOL audit or a plan audit flags the gap; secure the bond before the coverage period begins.
Where Does it Apply?
This bond is purchased to satisfy the federal ERISA bonding requirement for employee benefit plans administered in Colorado. It is a federal obligation, not a Colorado state license, so it applies wherever your plan operates but is issued here for your Colorado-based plan administration. The bond runs for one year and must be renewed annually to keep the plan in compliance.
How to Buy Online
Click 'Buy This Bond Online' on this page to open the secure surety portal in a new tab. Complete the short application with your plan details and the bond amount required, and your bond documents will be issued quickly without waiting on an agent callback. Download or print your bond certificate and keep it on file for plan records and any DOL review.
Why Bond Titan?
Bond Titan is powered by The Southern Agency and gives Colorado plan fiduciaries a direct path to ERISA bond compliance without phone calls or broker appointments. Our nationwide catalog is built for fast online purchase, so you can get bonded and stay compliant on your schedule. No waiting rooms, no callbacks — just a straightforward online transaction.