Does Your Company Need Bailment Coverage?
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 liability in situations like these, a company may look for specialized insurance through a bailee insurance application.
How Does It Work
When one person transfers their property to the care of another during the purchase of a service, the transaction is called a bailment. The business taking temporary ownership is considered the bailee, and is held liable for any damages done to the property while in their possession. General liability insurance would not cover these items, as they are not the property of the business. Bailee insurance generally provides coverage for the following situations:
- Water/flood damage
- Wind damage
What Businesses Need Coverage?
Any company whose primary services take custodial care of another belonging would benefit from a bailees insurance policy. Service providers could include:
- Storage units
- Computer repair shops
- Auto mechanics
- Watch/ and lock repair shops
- Restoration and refurbishing companies
Bailees insurance policies are generally one of three types: unlimited bailee, damage in process and mysterious disappearance. After you complete your bailee insurance application, the insurance provider will assess your services and the type of coverage which will best protect your business and client possessions.