What Are the Key Differences Between CNA and Travelers Fidelity Bonds?
General form list and ERISA plan focus
CNA lists dishonesty, janitorial-services, blanket, scheduled and pension-trust (ERISA) bonds. Travelers describes ERISA fidelity insurance as protecting an employee benefit plan from losses caused by fraud or dishonesty by people handling plan funds ([1][3]). CNA names several bond categories; Travelers’ description centers on plan assets and the people who handle them. For a plan sponsor, verify the required ERISA amount and covered handlers in the proposed bond.
Loss examples and protected property
CNA describes fidelity bonds as protecting businesses and their customers against losses from employee dishonesty. Travelers gives theft, embezzlement and forgery as examples of plan-fund losses caused by people who handle those funds ([1][3]). Both descriptions address dishonest conduct, but they identify different protected interests: business/customer losses in CNA’s description and benefit-plan funds in Travelers’. Check that the proposal names the same property and people as your exposure.
What Should You Confirm in CNA and Travelers Fidelity Bonds Quotes?
- Which plan funds and handlers does the Travelers bond identify, and what ERISA amount is proposed?
- Which CNA bond form covers the required business, customer or plan interest?