What Are the Key Differences Between Founder Shield and Travelers Fidelity Bonds?
Broker Placement Versus a Travelers Agent
Founder Shield places ERISA fidelity with third-party carriers and restates the 10% of funds-handled rule for plan assets. Travelers lists the same line under management liability and surety, covering theft, embezzlement or forgery by people handling plan funds, and you buy it through an independent agent. Choose Founder Shield if you want broker placement and its stated bond guidance; choose Travelers if you want to start with its ERISA product through an independent agent. [2] [5] [6]
Coverage Words and Statutory Amounts
Both describe plan-asset dishonesty. Founder Shield lists theft, embezzlement, forgery, misappropriation and larceny, and restates ERISA’s 10% / $1,000–$500,000 (up to $1 million with employer securities) rule. Travelers describes cover for a benefit plan against fraud or dishonesty such as theft, embezzlement or forgery by people who handle plan funds, without publishing those dollar figures on the reviewed pages. [2] [5]
How You Buy and Carrier Selection
You request Founder Shield’s bond on its website or through an advisor; it says it uses only AM Best A- or better carriers matched by industry. Travelers ERISA fidelity is bought through a Travelers independent agent. Founder Shield’s FAQ does not name the issuer for this line; Travelers’ reviewed pages do not publish premiums or terms. [1] [3] [6]
What Should You Confirm in Founder Shield and Travelers Fidelity Bonds Quotes?
- Ask Founder Shield which A-rated carrier would issue the bond and the penalty versus plan assets. [3] [2]
- Ask the Travelers agent for the bond amount, whether it meets ERISA, and the named plan. [5]
- Compare the definition of “handler of plan funds” on both forms. [2] [5]
- Confirm deductibles and whether the bond is written as surety, insurance, or both labels Travelers uses. [5] [6]