What is an ERISA Bond in South Carolina?

A South Carolina ERISA Bond - The Employee Retirement Income Security Act (ERISA) was passed in 1974 to ensure employers provide adequate medical care and compensation for injured workers. This law also requires companies to maintain insurance policies covering these risks.

ERISA Bond Requirements:
You must obtain an ERISA Fidelity Bond if you own a company with over 100 employees. These bonds protect your business against lawsuits filed by employees who have been hurt at work. You can apply for ERISA bond insurance through the Department of Labor.

Determine whether or not you qualify.
To determine whether or not you need ERISA bond insurance, you will first need to determine whether or not your business has more than 100 employees. This number varies based on the industry you operate in. Companies with fewer than 50 employees generally do not require an ERISA bond. However, some industries, such as construction, manufacturing, and transportation, require an ERISA bond regardless of how many employees there are.

Decide how much coverage you need.
You should consider purchasing an ERISA bond if your business has over 50 employees. These bonds protect your business against employee injuries that occur while at work. They also cover medical expenses incurred by employees after leaving the workplace. You can purchase these bonds through insurance companies, banks, or other financial institutions.

Submit your application.
You might qualify for a self-funded plan if your business has less than $5 million in annual revenue. Self-funding means paying the premiums yourself instead of having your insurer do so. This option is usually cheaper than purchasing an ERISA bond. However, there are some downsides to self-funding. You must ensure enough money to cover any claims during the year. Also, if you stop paying premiums, you will lose coverage.