It is important that bonds be in the correct amount required by the local union’s financial status. Each year the bonding coverage is checked when the Local files its LM report with the U.S. Department of Labor. Willful violations of the bonding requirements of LMRDA or ERISA are punishable by fines of $10,000, imprisonment for up to one year, or both.
The blanket bond covers the position in the Local (i.e. Treasurer, President, Accounting Clerk, etc.) not the individual.