What is the difference between Fidelity Bond and Professional Liability Policy?

Answer 1

These are completely different products with very few similarities. A Fidelity Bond is a guarantee that something will or will not happen. For instance, a cleaning company can have their employees bonded and if they steal something, the client is reimbursed. Usually the company or individuals bonded are then responsible to reimburse the bonding company for their losses. A General Liability Policy is an insurance policy that protects the company and client should an employee do something in error that causes a loss. It will protect the contractor for action against them. For instance, if a landscaping company is cutting the grass in front of an office and a rock flies out from under the mower and strikes a customer going into the office. Medical bill and loss totals $400,000 for the injuries that were a clear accident and not an intentional act by the employee. This would be covered by the Landscaping Companies General Liability Policy with not reimbursement required to anyone except the person injured. It also provides defense to protect the Company in addition to the amount of the loss or policy limit. The CGL would not cover intentional acts like theft of a computer from the office by a member of the cleaning crew. That is for the Fidelity Bond product, not the Commercial General Liability.