ERISA Bonds Program from Preferred Concepts LLC
Preferred Concepts LLC, through its partnership with Mercator Risk Services, offers a dedicated ERISA Bond program tailored for investment advisors and other professionals managing ERISA-regulated employee benefit plans. This program is designed to meet compliance requirements while providing agents and brokers with efficient access to a reliable market for these specialized bonds.
ERISA bonds are a legal obligation for any fiduciary managing assets of an employee benefit plan—such as 401(k)s or pension plans—under the Employee Retirement Income Security Act (ERISA). Many investment advisors may be unaware of this requirement, making it a critical coverage for agents to identify and place on behalf of their clients.
Ideal Accounts and Appetite
This program is ideal for:
- Registered investment advisors (RIAs)
- Financial professionals managing ERISA-governed plans
- Fiduciaries of employee benefit or pension plans
Even advisors with limited ERISA exposure may need this bond to remain compliant. Mercator Risk Services also specializes in helping with hard-to-place or distressed accounts, making this a flexible solution for a wide range of client scenarios.
For example, you may have a client with a small RIA firm managing multiple 401(k) plans. They may require ERISA bonds with varying limits based on assets under management. This program can help you address those needs quickly and efficiently.
Coverage Highlights and Advantages
- ERISA bonds written to meet federal fiduciary requirements
- Limits based on a percentage of plan assets, up to $500,000 per plan
- Simple underwriting process due to historically low exposure
- Competitive pricing and turnaround time
- Custom applications available or use of existing non-renewal applications
Mercator Risk Services works closely with brokers to evaluate each client’s needs and determine the appropriate bond structure. The process is designed to be agent-friendly and time-efficient.
Underwriting Notes and Minimum Premiums
Underwriting is streamlined thanks to the low historical loss ratio associated with ERISA bonds. In many cases, underwriting can begin using an application you already have on file, avoiding redundancy and speeding up the process. Additional information may be requested for distressed or unusual risks.
Territories and Availability
This ERISA Bond program is available nationwide, including in the District of Columbia. Coverage can be placed in all 50 states: AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY.
Why Work With Preferred Concepts LLC
Preferred Concepts LLC is a trusted wholesale broker offering access to multiple carriers through Mercator Risk Services. Their expertise in specialty lines and niche programs, including ERISA Bonds, allows you to confidently place business for clients with complex or non-standard needs. Whether you're dealing with a straightforward advisor account or a distressed fiduciary risk, their team can support you with fast quotes, knowledgeable underwriting, and customized application options.
For more information, call (860) 527-9717 or email [email protected]. Additional resources are available at www.mercatorpro.com.