AIG vs Foundershield: Fidelity Bonds

AIG markets Financial Institution Bonds with employee dishonesty and fraud examples. Founder Shield brokers ERISA fidelity bonds for plan sponsors and fiduciaries, with statutory minimum amounts tied to plan funds handled.

Van Ness Partners presents a practical comparison of source materials relevant to financial crime exposures.Research updated 2026-09-30

Crime coverage

AIG

  • role: AIG markets Financial Institution Bonds separately from commercial-entity Crime Insurance. This draft covers the named bond family only and does not treat the crime policy as a fidelity bond. Role in this product is limited to the description on the linked AIG source.company-reportedSource ↗
  • eligibility: AIG names banks, non-bank lenders, asset managers and insurance companies as financial-institution bond audiences. The page does not establish eligibility for a specific entity or jurisdiction. Audience is the segment AIG names on the linked source; this is not an underwriting decision, quote or guarantee of availability.company-reportedSource ↗
  • coverage: AIG lists employee dishonesty, theft on premises, forgery, computer-systems fraud and impersonation fraud among financial-institution bond coverage examples. These examples are subject to the actual bond form and do not define all terms. AIG’s public product description is not the policy. Actual entitlement depends on the applicable issued form, endorsements and declarations.company-reportedSource ↗
  • services: AIG describes dedicated underwriting and claims teams for its crime and fidelity offerings. The application directory includes distinct fidelity applications by financial-institution type; this is an application path, not a bound bond. The linked page describes company-reported support; specific account services and third-party arrangements must be confirmed.company-reportedSource ↗
  • limits: The reviewed pages do not state a standard bond amount or buyer-specific deductible. Confirm the bond form, amount and conditions with AIG for the particular institution. This statement reports only what the linked public source discloses and does not substitute for a quote or issued policy.not-disclosedSource ↗

Founder Shield

  • role: 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. About-us page; applies to Founder Shield's brokerage model generally, restated here for this line.company-reportedSource ↗
  • eligibility: 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). ERISA Fidelity Bond product page.company-reportedSource ↗
  • coverage: 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. Product page; the issued bond and its terms control actual coverage.company-reportedSource ↗
  • limits: 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. Product page describing the ERISA statutory bonding requirement.company-reportedSource ↗
  • insurer: 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. General carrier-selection FAQ, not specific to this line's placements.company-reportedSource ↗
  • application: 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. About-us and carrier-selection pages describe the general placement process, not a line-specific application form.company-reportedSource ↗Source ↗

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

ERISA Plan Bonding and Financial Institution Losses

Founder Shield places ERISA Fidelity Bonds for plan sponsors, fiduciaries, and others handling plan funds, describing theft, forgery, misappropriation, and embezzlement exposures. It explains statutory bonding amounts as a percentage of plan funds handled, with minimum and maximum requirements, including a higher cap for plans holding employer securities. AIG’s Financial Institution Bond materials instead list bank-focused employee dishonesty, forgery, computer fraud, and impersonation scenarios. These products answer different buyer needs, so match the bond to the obligation and organization. [3] [1]

Placement and Carrier Identification

Founder Shield arranges the ERISA bond through third-party carriers and does not name the issuer for an individual placement. AIG lists applications by financial-institution type but does not publish a standard bond amount or deductible. Buyers should confirm the issuing entity, amount, covered handlers, and any required obligee language; the statutory ERISA minimum described by Founder Shield is not a quote-specific guarantee. [3] [1]

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

  • Ask Founder Shield how it calculates the required amount from plan assets and which carrier will issue the ERISA bond. [3]
  • Ask AIG which institution bond form, amount, deductible, and issuing entity fit your organization. [1]

Founder Shield describes ERISA bond requirements tied to plan assets, including statutory minimum and maximum amounts; AIG addresses broader financial-institution bond scenarios.

Sources consulted

  1. 01
    Crime and Fidelity Insurance

    AIG · Official AIG page, lines 257–275 and 353–354: separate Financial Institution Bonds section, named financial-institution audience and example covered losses; policy/state availability caveat. AIG’s Financial Lines Applications directory separately lists institution-specific fidelity applications. · accessed 2026-09-30

  2. 02
    About Us

    Founder Shield · “Founder Shield is the innovation arm of The Baldwin Group”; company history and mission · accessed 2026-09-23

  3. 03
    ERISA Fidelity Bond

    Founder Shield · What Is ERISA Fidelity Bond Insurance?; Who Needs ERISA Fidelity Bond Insurance Coverage?; What Does ERISA Fidelity Bond Insurance Cover? · accessed 2026-09-23

  4. 04
    How Do You Decide Which Carriers to Approach?

    Founder Shield · FAQ answer on carrier selection: works exclusively with A-rated (AM Best) carriers, matched by industry appetite · accessed 2026-09-23

  5. 05
    Glossary of Insurance Terms

    National Association of Insurance Commissioners · Fidelity; Surety Bond · accessed 2026-09-16

  6. 06
    Crime Terms and Conditions

    Travelers Casualty and Surety Company of America · I.A.1–3 p.1; III.S pp.8–9; V.B.1–2 pp.18–20; CRI consideration p.1; III.P p.8; V.A.3 pp.16–17; V.A.4 p.17; V.B.3 p.20; IV.L p.15 · accessed 2026-09-16

  7. 07
    Field Assistance Bulletin No. 2008-04: Guidance Regarding ERISA Fidelity Bonding Requirements

    U.S. Department of Labor, Employee Benefits Security Administration · Q1–Q3 pp.2–3; Q2 pp.2–3 · accessed 2026-09-16

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