Uses Of An ERISA Bond

Uses Of An ERISA Bond

An ERISA bond, also called an ERISA fidelity bond, protects the plan for which it’s purchased against fraud and dishonesty committed by company employees who handle funds or property associated with the benefit or pension plan.

Uses Of An ERISA Bond
Uses Of An ERISA Bond

Uses Of An ERISA Bond

The Department of Labor requires those handling retirement plan assets to purchase ERISA bonds. However, many choose to obtain fiduciary liability insurance, which provides broader coverage than an ERISA fidelity bond.

1. Prevents Fraud

ERISA bonds, also known as fidelity bonds, protect employee retirement and benefit plans from theft or fraud committed by the people in charge of managing them. These bonds are required by federal law for anyone who handles a company’s employee retirement plan assets. If stolen, lost, or otherwise mishandled, beneficiaries can file a claim with the bond to recover their losses.

Typically, these bonds cover up to 10% of the total assets handled by any person required to be bonded by ERISA. However, the Department of Labor can require more coverage in appropriate cases.

ERISA bonds should not be confused with fiduciary liability insurance, which covers unintentional breaches of fiduciary duty that can still result in financial losses to the plan. 

2. Prevents Dishonesty

An ERISA bond is a fidelity bond that protects the beneficiaries of employee retirement and benefit plans from financial loss caused by dishonesty or theft by the persons in charge of managing the plan. The bond is purchased from a surety company on the Department of Treasury’s list of approved sureties.

The Department of Labor requires people who handle retirement and benefit plan funds or property to be covered by an ERISA bond. This bond prevents crime against the plan’s assets. It covers losses that result from fiduciary dishonesty or fraud, such as theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, and willful misapplication.

The bond must be named (or identified) as the insured on the policy. This differs from fiduciary liability insurance, which protects against breaches of responsibility and is not required by ERISA. The fidelity bond must be paid using money from the pension or benefit plan, not from any available business assets.

3. Relieves Fiduciaries from Liability

ERISA requires that anyone who handles funds or property associated with a plan be bonded. While fiduciary liability insurance covers fiduciaries for losses from breach of duties, this coverage does not satisfy the fidelity bond requirement.

Uses Of An ERISA Bond
Uses Of An ERISA Bond

Fortunately, there is an alternative. The ERISA fidelity bond is explicitly designed to cover plan assets in the event of fraud, theft, or dishonesty. If the beneficiary of a plan experiences a loss due to the actions of a fiduciary, the beneficiaries can file a claim against the bond to receive financial compensation.

Unlike other types of bonds, an ERISA bond does not require a deductible. Every loss from fraud, dishonesty, or theft covered by the bond is paid out of the bond’s total face amount.

4. Requires Compliance

Most plans and third-party service providers require that any person who handles funds or other property for the plan must be bonded. This refers to individuals who come into physical contact with cash, checks, or other property belonging to the employer-sponsored retirement plan. It also includes those with the authority to sign cheques or other negotiable instruments from the plan’s funds.


ERISA fidelity bonds safeguard the plan from losses caused by fraudulent or dishonest handling of funds or property. They are different from fiduciary liability insurance, which is a voluntary safeguard that covers a variety of fiduciary activities and does not cover theft.

Hiring a Commercial Cleaning Service

5 Perks of Hiring a Commercial Cleaning Service for Your Business

5 Perks of Hiring a Commercial Cleaning Service for Your Business

Commercial cleaning companies should be able to provide references, perform background checks, and complete employee training to ensure a consistent end product. They should also have a low employee turnover to protect your property and proprietary information.

Hiring a commercial cleaner can save you money in the long run. Employees are less likely to take sick days when the work environment is clean and sanitary.

1. Saves You Time

Maintaining a clean and hygienic business is a huge time commitment for many owners. Hiring a commercial cleaning company to handle your business’s needs is the most efficient way to ensure you always meet customer and client expectations.

It can also save you money in the long run. Recruiting regular staff to clean the business can be expensive as they will likely have other duties and pay premium salary rates.

Besides that, they may need to gain the expertise to do it properly. For instance, they might need to learn how to correctly defrost an office refrigerator or sanitize an equipment room. This could lead to workplace accidents and a costly Worker’s Compensation claim. Commercial cleaning services are expected to have the right tools and know how to do the job quickly.

2. Increases Productivity

Clean, organized environments can boost worker morale and productivity. Commercial cleaning services can free employees from dusting, sanitizing, and vacuuming, allowing them to focus on their tasks.

Hiring a commercial cleaning service seems like an added expense, but it can save you money in the long run. Commercial cleaning companies have the right equipment and supplies to do the job quickly and efficiently. They can also provide janitorial services at a fraction of the cost it would take your regular employees to do them.

Another way hiring a residential cleaning service can save money is by cutting down on sick days. Sick employees don’t produce as much as healthy ones, so a commercial cleaning company can keep your work environment clean and safe to prevent workplace accidents that might lead to employee illnesses.

3. Reduces Risk of Injury

Businesses that hire professional cleaning services can save money on employee sick days, workers’ compensation, and other line items. A clean workspace also makes a positive impression on customers and clients, which can lead to additional business.

5 Perks of Hiring a Commercial Cleaning Service for Your Business
5 Perks of Hiring a Commercial Cleaning Service for Your Business

Many commercial cleaners have specialized equipment that helps them reach hard-to-reach areas. This includes ladders and vacuum cleaners with extensions that allow them to get close to shelves, machines, and other infrastructure. Having employees perform these tasks puts them at risk for injuries, including back pain from lifting heavy objects and falls from using step stools and ladders.

Hiring a commercial cleaning service is much safer for your employees. Professional cleaners are trained and experienced at handling sticky situations, and most carry liability insurance in case of an accident.

4. Prevents Germs and Bacteria from Spreading

With a single lousy sneeze or finger touch, germs spread from person to person throughout your business. Without regular sanitization of high-touch areas such as door knobs, light switches, and restrooms, one embryo could cause illness in multiple people, leading to employee absenteeism and lost productivity.

Commercial cleaning services know how to get to those hard-to-reach spots that are often overlooked. They also know what kinds of cleaning products and methods are best for each type of business.

In a time when the coronavirus is making headlines, keeping your workplace clean and hygienic is more critical than ever. Commercial cleaners help protect your employees and customers from harmful bacteria, viruses, and pathogens. They do this by cleaning and disinfecting all surfaces, from high-traffic areas to rarely used rooms.

5. Saves You Money

Commercial cleaning services know how to get the job done efficiently and at a competitive rate. Hiring a professional service is far more cost-effective than having employees dedicate part of their paychecks toward the task.

An expert cleaning company also provides the equipment and supplies required to perform the tasks. If you were to employ your cleaning staff, you’d need to purchase floor buffers, steam cleaners, and industrial vacuums, which can add up quickly.

Final Words

Clean spaces give the impression of a well-run, professional business that encourages client confidence. It is essential if you are in the hospitality industry, as nobody wants to eat or sleep in a dirty environment. This can lose you valuable customers and even result in a shutdown.

How Supplement Contract Manufacturers Ensure Product Quality and Safety

How Supplement Contract Manufacturers Ensure Product Quality and Safety

A successful supplement company must provide high-quality products that consumers will adopt. The product’s design and packaging often determine how well it sells.

Contract manufacturers are valuable partners for supplement brands. They can help with research, ingredient sourcing, formulation, manufacturing, lab testing, and more. However, poor quality control can tarnish the industry’s standing and damage customer trust.


Supplement manufacturers must be able to produce safe herbal supplements for businesses. The best way to protect a business from an expensive recall is to meet all regulatory standards before starting production. Look for a manufacturer that offers a Certificate of Analysis with every batch. This document certifies that all raw ingredients have passed a strict quality control process and meet dietary supplement regulations.

How Supplement Contract Manufacturers Ensure Product Quality and Safety
How Supplement Contract Manufacturers Ensure Product Quality and Safety

Setting specifications enables both parties to discuss their expectations and set parameters for the partnership. The conversation can cover everything from desired product claims, consumer targets, and market needs to desired product formulation, ingredient sourcing, and delivery profile.

Reviewing past FDA inspections, 483s, and warning letters can provide insight. A reputable contract manufacturer will adhere to all relevant laws and regulations. This dedication to compliance and quality will help businesses create safe, efficient supplements. It will also ensure that consumers receive the high-quality products they expect and deserve.

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When designing a new dietary supplement, brand owners must be careful not to include ingredients that may cause allergies or are banned by law. A reputable supplement contract manufacturer will collaborate closely with a company to ensure that a product meets the specifications and adheres to regulatory standards while being safe for consumers.

In addition, a contract manufacturer should have experienced staff to handle the testing process and ensure that a supplement is free from contamination and meets all requirements before it leaves the factory. The testing procedure should include a full panel of mandatory and more detailed tests as needed.

When finding a contract supplement manufacturing company, look for a cGMP-certified firm that encourages transparency throughout production. This will give you peace of mind and safeguard your business’ reputation by ensuring that all supplements are produced per strict quality standards.


Whether designing and manufacturing the optimum supplement formula (or bringing an existing one to market), sourcing innovative raw materials, or establishing the product packaging, supplement contract manufacturers use sophisticated equipment to ensure that the finished products meet regulatory standards. These include high-speed powder blenders, encapsulation machines, and tablet presses that streamline production and shorten product lead times. Kosher, gluten-free, and vegetarian certifications are also often available.

Regulatory compliance is another important aspect of the process, and a good contract manufacturer will help the brand understand how to align its final product with FDA and FTC regulations. It should also have CGMP (current good manufacturing practices) standard operating procedures that the company follows when a brand hires it to manufacture dietary supplements.

How Supplement Contract Manufacturers Ensure Product Quality and Safety
How Supplement Contract Manufacturers Ensure Product Quality and Safety

Finally, the contract manufacturer should offer inventory management and order fulfillment services. These free the brand from having to handle storing and shipping its products. This is especially important for brands that sell on Amazon, as many of these services offer fulfillment support for that platform.


When selecting a supplement contract manufacturer, look for one with experience in a wide range of manufacturing and packaging options. A full-service partner can offer everything from gummy, tablet, and capsule production to custom bottle designs and labels that help your brand stand out in the marketplace and reinforce your established brand identity.

Look for a partner that offers comprehensive quality control procedures to ensure the integrity of your finished product. This includes a variety of testing protocols, including contaminant tests, label and packaging accuracy checks, stability testing to determine how long the supplements will remain potent, and more.

How Supplement Contract Manufacturers Ensure Product Quality and Safety
How Supplement Contract Manufacturers Ensure Product Quality and Safety

In addition to ensuring compliance, a contract supplement manufacturer can guide your brand when navigating FDA supplement regulations and other federal standards related to the formulation, product quality, and labeling. A good supplement contract manufacturer will have a clear process for helping you meet your regulatory requirements and deliver the highest quality products to your customers.