Glossary

Fidelity Bond

A type of insurance coverage providing protection for acts of fraud or dishonesty by covered individuals obtained through your business insurance carrier. The Department of Labor requires that all qualified plans have a fidelity bond in an amount no less than 10% of trust assets and no more than $500,000. Plans that do have a fidelity bond are subject to audit. Plan only covering owners and their spouses are exempt from this requirement.

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