The IRS requires businesses to have insurance to protect 401(k) participants against fraud or misappropriation by those who have access to funds. Most business insurance plans will cover up to $100,000, so when plan assets are higher than this, it’s important to purchase a fidelity bond.

A fidelity (or ERISA) bond is an insurance policy which covers 10% of plan assets. If you purchase a GO-Plus or GO-Premier plan from 401GO, your fidelity bond will be included, so you won’t need to worry about it.