Founder Shield vs Gallagher Fidelity Bonds

Founder Shield is a retail insurance brokerage, described on its site as “the innovation arm of The Baldwin Group,” and places Founder Shield ERISA Fidelity Bond with third-party carriers rather than underwriting the policy itself. ⁷Company-reported. About-us page; applies to Founder Shield's brokerage model generally, restated here for this line.

Gallagher's Executive and Financial Risk practice places fidelity bond coverage with outside carriers alongside its employee-dishonesty (crime) coverage; it does not underwrite the bond. ¹⁰Company-reported. Group-level executive-and-financial-risk practice page; fidelity bonds are described jointly with crime coverage, not as a fully separate section.

Founder Shield says it places policies, including Founder Shield ERISA Fidelity Bond, only with carriers rated A- or better by AM Best, chosen for the client's industry. It does not name the issuing insurer for this line; that depends on which carrier the policy is placed with. ³Company-reported. General carrier-selection FAQ, not specific to this line's placements.

The executive-and-financial-risk page does not name the insurer that would issue a given client's fidelity bond. ¹⁰Not publicly disclosed. Checked the group-level executive-and-financial-risk practice page.

Founder Shield says this bond is required for plan sponsors offering a retirement plan, the fiduciaries who manage it, third-party administrators, and even small businesses with a simple 401(k). ⁶Company-reported. ERISA Fidelity Bond product page.

Gallagher ties fidelity bond limit-setting to a client's required bond limits under ERISA, indicating this offering is aimed at plan sponsors and fiduciaries needing ERISA fidelity bonding rather than a general commercial audience. ¹⁰Company-reported. Group-level executive-and-financial-risk practice page.

Founder Shield lists theft and embezzlement of plan assets, forgery, misappropriation and larceny by those who handle a benefit plan's funds as what an ERISA fidelity bond covers. ⁶Company-reported. Product page; the issued bond and its terms control actual coverage.

Not described in the reviewed sources.

Founder Shield's page states the federal ERISA bonding requirement: at least 10% of plan funds handled, with a minimum bond of $1,000 and a maximum of $500,000 (up to $1 million for plans holding employer securities). This is the statutory minimum, not a Founder Shield-specific limit. ⁶Company-reported. Product page describing the ERISA statutory bonding requirement.

The page does not publish specific fidelity bond limits or premium ranges beyond describing the ERISA-linked methodology used to recommend a limit. ¹⁰Not publicly disclosed. Checked the group-level executive-and-financial-risk practice page.

Not described in the reviewed sources.

Gallagher says its methodology for fidelity bond and crime limits includes peer analysis using third-party databases and an exposure index developed by the Surety Association of America with the American Institute of Accountants. ¹⁰Company-reported. Group-level executive-and-financial-risk practice page.

You request Founder Shield ERISA Fidelity Bond through Founder Shield's website or an insurance advisor rather than binding coverage directly; Founder Shield says its placement team then approaches carriers on the client's behalf. ^7,3Company-reported. About-us and carrier-selection pages describe the general placement process, not a line-specific application form.

Not described in the reviewed sources.

Not described in the reviewed sources.

Gallagher says it reviews coverage to confirm the carrier allows appropriate treatment of older incidents and does not use claims triggers that are too difficult to prove, a review it applies to the same crime-and-fidelity offering. ¹⁰Company-reported. Group-level executive-and-financial-risk practice page; a stated review practice, not a guarantee of claim payment.