Coverdash vs Foundershield: Fidelity Bonds

Coverdash arranges fidelity bonds through outside carriers and describes a digital quote-to-purchase flow. Founder Shield brokers ERISA fidelity bonds for plan sponsors and fiduciaries, with statutory minimum amounts based on plan assets handled.

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

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

General Employee Dishonesty or ERISA Plan Assets

Coverdash lists an employee-dishonesty bond through its online surety catalog. Founder Shield offers ERISA fidelity bonds for plan sponsors, fiduciaries, administrators and businesses with a 401(k), where federal rules set a bond amount based on plan funds handled. Choose Coverdash if you need a general employee-dishonesty bond; choose Founder Shield if you need to meet an ERISA plan requirement. [1] [4]

Digital Purchase Versus Advisor Placement

Coverdash describes a fully digital quote-to-purchase process on the surety page that includes fidelity among four bond types. Founder Shield asks you to request the bond on its site or through an advisor, then approaches AM Best A- or better carriers. Coverdash’s surety page does not name the issuer; Founder Shield names a rating floor but not the specific carrier. [1] [3] [5]

Unpublished Amount Versus Statutory ERISA Figures

Coverdash does not publish bond-amount figures. Founder Shield restates ERISA: at least 10% of plan funds handled, minimum $1,000, maximum $500,000 (up to $1 million if the plan holds employer securities). Coverdash’s page-level eligibility text is written for contractors and licensed trades bidding on contracts, not for employee-dishonesty bonds specifically. [1] [4]

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

  • Ask Coverdash whether the bond is first-party, third-party or ERISA, which the surety card does not specify, and which carrier issues it. [1]
  • Ask Founder Shield for the calculated ERISA penalty and which A-rated carrier will write it. [4] [5]
  • Confirm whether you need a client-facing employee-dishonesty bond or a benefit-plan statutory bond. [1] [4]
  • Get written bond amounts from Coverdash; the public page does not show them. [1]

Crime coverage

Coverdash

  • role: Coverdash arranges fidelity bonds as a broker rather than an insurer, placing coverage with a carrier under its standard brokerage terms. General brokerage terms applied to the fidelity-bonds card on the surety-bond page; not specific to any one carrier or state.company-reportedSource ↗Source ↗
  • coverage: Coverdash's surety-bond page describes fidelity bonds in a single line as protecting clients against loss from employee dishonesty; it does not have a dedicated fidelity-bond product page. One catalog card on the surety-bond page, not a full product description. Fidelity bonds are a distinct crime-type coverage rather than a three-party surety guarantee, even though Coverdash lists them on the same page as its surety bonds.company-reportedSource ↗
  • insurer: The surety-bond page does not name the insurer that issues fidelity bonds. Reviewed surety-bond page as of 2026-09-23; the page describes coverage without naming a specific carrier.not-disclosedSource ↗
  • eligibility: The surety-bond page's eligibility description (contractors, licensed trades and businesses bidding on contracts) is written for surety bonds generally and does not separately describe who needs a fidelity bond specifically. Page-level eligibility text is shared across all four bond types on the page; it was not written specifically for employee-dishonesty coverage.not-foundSource ↗
  • limits: The surety-bond page does not publish specific limit or bond-amount figures for fidelity bonds. Reviewed surety-bond page as of 2026-09-23; figures are quote-specific and not shown on the public page.not-disclosedSource ↗
  • application: Coverdash describes a fully digital quote-to-purchase process on its surety-bond page, which includes the fidelity-bond option among its four bond types. Product-page company information and cross-sell section.company-reportedSource ↗

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 ↗

Coverdash lists a general employee-dishonesty bond; Founder Shield focuses on ERISA bonds for plan sponsors and people handling 401(k) assets.

Sources consulted

  1. 01
    Surety Bonds

    Coverdash · Types of Coverage card 04, Fidelity bonds: "Protect clients against loss from employee dishonesty" · accessed 2026-09-23

  2. 02
    Terms And Conditions

    Coverdash · "Coverdash does not provide any underwriting services"; broker/agent of record designation · accessed 2026-09-23

  3. 03
    About Us

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

  4. 04
    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

  5. 05
    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

  6. 06
    Glossary of Insurance Terms

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

  7. 07
    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

  8. 08
    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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