Foundershield vs Gallagher: 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.

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

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.

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. [2] [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. [2] [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. [2] [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] [2]
  • 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. [2] [4]
  • Ask Gallagher how its older-incident and claims-trigger review would apply to the quoted wording. [4]

Crime coverage

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 ↗

Gallagher

  • role: 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. Group-level executive-and-financial-risk practice page; fidelity bonds are described jointly with crime coverage, not as a fully separate section.company-reportedSource ↗
  • eligibility: 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. Group-level executive-and-financial-risk practice page.company-reportedSource ↗
  • services: 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. Group-level executive-and-financial-risk practice page.company-reportedSource ↗
  • claims: 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. Group-level executive-and-financial-risk practice page; a stated review practice, not a guarantee of claim payment.company-reportedSource ↗
  • insurer: The executive-and-financial-risk page does not name the insurer that would issue a given client's fidelity bond. Checked the group-level executive-and-financial-risk practice page.not-disclosedSource ↗
  • limits: The page does not publish specific fidelity bond limits or premium ranges beyond describing the ERISA-linked methodology used to recommend a limit. Checked the group-level executive-and-financial-risk practice page.not-disclosedSource ↗

Sources consulted

  1. 01
    About Us

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

  2. 02
    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

  3. 03
    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

  4. 04
    Executive and Financial Risk Insurance

    Gallagher · Employee Dishonesty (Crime) and Fidelity Bond insurance section · 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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