What Are the Key Differences Between Founder Shield and Insureon Fidelity Bonds?
ERISA Plan Scope and Bond Amounts
Founder Shield frames its fidelity bond around benefit plans: it describes sponsors, fiduciaries and administrators as buyers, and cites an ERISA minimum of 10% of plan funds handled, generally $1,000 to $500,000 (up to $1 million for plans holding employer securities). Those figures are statutory requirements, not a quoted Founder Shield limit. Insureon instead describes employee-dishonesty losses involving a client or another party and positions the product for small businesses; its overview supplies no bond amount. Plan sponsors should ask Insureon which ERISA form and amount its quote addresses. [2] [4]
Placement and What the Quote Identifies
Founder Shield says a buyer requests an ERISA Fidelity Bond through its website or an advisor, after which its placement team approaches carriers; it also says it selects A- or better AM Best rated carriers without naming the carrier for an individual bond. Insureon offers an online request path from its bond catalog, but that route likewise does not identify the issuer or promise a bind. Compare the form and issuing surety in writing before relying on the listing. [1] [3] [4]
What Should You Confirm in Founder Shield and Insureon Fidelity Bonds Quotes?
- Ask Founder Shield to show the plan asset calculation, applicable statutory cap and issuing carrier on its proposal; ask Insureon for the bond form and specific amount quoted. [2] [4]
- If the bond protects a benefit plan, confirm that the Insureon quote is an ERISA fidelity bond and covers the people handling plan funds, rather than a general employee-dishonesty bond. [2] [4]