Some companies engage in transactions where client possessions have a temporary transfer of ownership. The liabilities this relationship pose are covered under the unique design of a bailee insurance policy.
For any company who provides a service that temporarily assumes custodial ownership of a client’s possession, accidents or damages can be problematic. While they may have a general liability coverage, this won’t cover the possession in discussion. The following businesses engage in practices that would warrant a bailee policy:
- Storage units
- Computer repair shops
- Auto mechanics
- Restoration and refurbishing companies
- Watch/ and lock repair shops
Various businesses provide services where a temporary assumption of ownership occurs between company and client. Services like this could include dry cleaning, vehicle mechanics or furniture restoration. To protect from a liability in situations like these, a company may look for specialized insurance through a bailee insurance application
What It Covers
Bailee insurance policies typically offer three types of incident protection: unlimited bailee, mysterious disappearance and damage in process occurrences. It will also offer coverage for situations involving water or flood damage, burglary, explosions, collisions or damage caused by lightning or fire.
The service you offer your client is valuable, but in the event of a mishap with their possession, you may be faced with an insurmountable financial recovery lawsuit. Check out the benefits a bailee insurance policy with your local broker.