Beazley vs Foundershield: Fidelity Bonds

Beazley insures Financial Fidelity Bonds for financial institutions and describes employee theft coverage. Founder Shield brokers ERISA bonds for plan sponsors and fiduciaries, with statutory minimums tied to plan funds handled.

Van Ness Partners presents a practical comparison of source materials relevant to financial crime exposures.Research updated 2026-09-25

Crime coverage

Beazley

  • role: Beazley underwrites Financial Fidelity Bonds, which it markets specifically to financial institutions, as a separate line from the Commercial Crime product it sells to ordinary commercial companies on the same page. Crime and Fidelity product page; "fidelity bonds" is the name the page uses for the financial-institution version of this crime coverage.company-reportedSource ↗
  • eligibility: Beazley says its expert team underwrites Financial Fidelity Bonds for financial institutions. The page does not name which types of financial institution (e.g., banks, credit unions, broker-dealers) qualify. Product-page target-customer statement; no institution-type list or asset-size threshold is published.company-reportedSource ↗
  • coverage: Beazley describes fidelity bonds as protecting a financial institution from loss of money and securities caused by employee theft, plus third-party-related losses such as forgery or alteration, on-premises and in-transit loss, money-order and counterfeit-currency fraud, computer fraud, client-property loss, credit-card fraud and related expenses. Product page's general description of crime/fidelity coverage; the page does not itemize a separate insuring-agreement list for fidelity bonds versus Commercial Crime.company-reportedSource ↗
  • coverage: The reviewed page attributes its fraudulent-instruction (social-engineering) insuring agreement and out-of-band-authentication condition to "our Commercial Crime policy" specifically. It does not state that Financial Fidelity Bonds include this same insuring agreement. Checked against the full product page text as of 2026-09-23; absence of a fidelity-bond-specific statement is not evidence the coverage is unavailable to financial institutions.not-foundSource ↗
  • limits: The product page advertises limits of up to US $25,000,000 for this line without separately breaking out a fidelity-bond-specific maximum from the Commercial Crime figure on the same page. Shared headline limit figure; retentions and bond-specific sub-limits are not published.company-reportedSource ↗
  • application: Beazley lists dedicated Financial Institution bond application forms in its Tools & Resources: FI Bond Form 14, Form 15, Form 24 and Form 25, separate from the Commercial Crime application forms on the same page. Tools & Resources section of the product page; the page does not describe an online quote or self-service purchase flow.company-reportedSource ↗
  • services: Beazley says its underwriting and claims professionals for this product family work side by side so that the original underwriting intent is respected when a claim arises. Company-stated internal process description applying to the Crime and Fidelity product family generally; no fidelity-bond-specific service is separately described.company-reportedSource ↗
  • claims: The product page links to Beazley's general claim-notification channel for this line. It does not disclose a claims response-time commitment or a dedicated claims process specific to Financial Fidelity Bonds. Product page "Notify a Claim" link as read on 2026-09-23; response times were not found.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 Beazley and Founder Shield Fidelity Bonds?

Financial-Institution Risk or ERISA Plan Requirements

Beazley targets financial institutions needing employee-theft, forgery, transit and computer-fraud protection, with advertised limits up to $25 million. Founder Shield places ERISA fidelity bonds for people handling employee-benefit plan funds, where the required bond is generally 10% of funds handled, capped at $500,000 or $1 million for plans holding employer securities. Choose Beazley if you are a financial institution; choose Founder Shield if you need to meet an ERISA plan bond requirement. [1] [3]

What Each Says Is Covered

Beazley describes protection from loss of money and securities from employee theft plus third-party-related losses such as forgery, on-premises and in-transit loss, money-order and counterfeit-currency fraud, computer fraud, client-property loss, credit-card fraud and related expenses. Founder Shield lists theft and embezzlement of plan assets, forgery, misappropriation and larceny by those who handle a benefit plan’s funds. Beazley’s list is institution operations; Founder Shield’s list is plan-asset handling. [1] [3]

$25 Million Advertised Versus Statutory ERISA Amounts

Beazley advertises limits up to US $25,000,000 and uses FI Bond Forms 14, 15, 24 and 25. Founder Shield restates ERISA’s bonding rule: at least 10% of plan funds handled, minimum $1,000, maximum $500,000 (up to $1 million for plans holding employer securities)—a statutory floor, not a Founder Shield-specific limit. You apply to Beazley through those forms, not an online bind; you request Founder Shield’s bond on its site or through an advisor. [1] [3] [2]

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

  • Ask Beazley which FI form applies and whether computer fraud and in-transit loss are on the bond. [1]
  • Ask Founder Shield for the calculated ERISA penalty (10% of funds handled) and which A-rated carrier will issue it. [3] [4]
  • Confirm whether you need an institution fidelity bond or an ERISA plan bond; they are different buyers on these pages. [1] [3]
  • Check whether Beazley’s Commercial Crime fraudulent-instruction wording applies to the fidelity bond. [1]

Beazley offers financial-institution fidelity bonds up to $25 million; Founder Shield places ERISA bonds for plan sponsors with a statutory 10% requirement and $500,000 cap.

Sources consulted

  1. 01
    Crime and Fidelity

    Beazley · What we offer: Financial Fidelity Bonds for financial institutions; Limits up to US $25,000,000; How can we help; Tools & Resources FI Bond application forms · accessed 2026-09-23

  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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