Founder Shield vs Gallagher: How Do They Compare for Fidelity Bonds?

Founder Shield brokers ERISA fidelity bonds for plan sponsors and fiduciaries, with statutory minimums tied to plan funds handled. Gallagher arranges similar bonds through outside carriers and reviews limits and policy terms for plan clients.

Founder Shield places ERISA fidelity bonds at the statutory 10% amount, capped at $500,000 or $1 million for plans holding employer securities; Gallagher helps sponsors set limits using peer analysis. ^1,⁴

What Are the Key Differences Between Founder Shield and Gallagher Fidelity Bonds?

Statutory Amount or Limit-Setting Advice

Founder Shield places ERISA fidelity bonds for plan sponsors and states the 10% requirement, with statutory caps of $500,000 or $1 million for plans holding employer securities. Gallagher adds peer analysis and an exposure index to help plan sponsors set fidelity limits. Choose Founder Shield if you need an ERISA bond placed at the statutory amount; choose Gallagher if you want help benchmarking the limit. ¹ ⁴

How Limits Are Explained

Founder Shield restates the federal ERISA bonding rule: at least 10% of plan funds handled, minimum $1,000 and maximum $500,000 (up to $1 million for plans holding employer securities), and notes that is the statutory minimum rather than its own cap. Gallagher ties limit-setting to a client’s required ERISA bond limits and says its method includes peer analysis using third-party databases and an exposure index developed by the Surety Association of America with the American Institute of Accountants. ¹ ⁴

Covered Acts and Claims Review

Founder Shield lists theft and embezzlement of plan assets, forgery, misappropriation and larceny by people who handle benefit-plan funds. Gallagher does not publish that same list on the reviewed page; it says it reviews coverage so the carrier allows appropriate treatment of older incidents and does not use claims triggers that are too difficult to prove. Founder Shield says it places only with AM Best A- or better carriers; Gallagher’s page does not name insurers. ¹ ³ ⁴

What Should You Confirm in Founder Shield and Gallagher Fidelity Bonds Quotes?

Ask Founder Shield which A-rated carrier would issue the ERISA bond and the actual penalty versus the statutory minimum. ³ ¹
Ask Gallagher for the recommended limit, the peer-analysis output, and whether the placement is a fidelity bond, a crime policy, or both. ⁴
Confirm covered persons (plan fiduciaries, TPAs, employees who handle funds) on both forms. ¹ ⁴
Ask Gallagher how its older-incident and claims-trigger review would apply to the quoted wording. ⁴

Founder Shield vs Gallagher Fidelity Bonds Compared

Founder Shield vs Gallagher: Fidelity Bonds: documented features by provider

Criteria	Founder Shield ERISA Fidelity Bond	Gallagher Fidelity Bond Insurance
Who It’s For	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). ¹Company-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. ⁴Company-reported. Group-level executive-and-financial-risk practice page.
Role in This Line	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. ²Company-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. ⁴Company-reported. Group-level executive-and-financial-risk practice page; fidelity bonds are described jointly with crime coverage, not as a fully separate section.