Restoration Insurance: What is Bailee Coverage?

July 11, 2019

 

One of the most important, but often overlooked, insurance coverages for restoration contractors is Bailee Liability Insurance.

 

What Is Bailee Liability Insurance?

 

To understand the definition of bailment liability insurance, it’s important to understand what a bailment is.  A bailment is a change of possession without a change of title.  In other words, it is property that is in your care, custody or control.   This is important for restoration contractors because there are times where they have customers’ property in their control.

 

A standard general liability policy excludes any damage that happens to property that is in your care, custody or control.   For example, let’s say you are working on a customer’s home that has some water damage.  While you are repairing the home, one of your employee’s accidentally knocks over the customer’s television and breaks it.   If you turned this claim into your insurance company, there is a very high likelihood that the claim would be denied by the insurance company because the property was in your control when the accident happened.

 

Bailee liability insurance provides protection against the claim scenarios like the one described above.  It provides insurance coverage for property that is in your care, custody or control.

 

This coverage is usually very inexpensive to purchase, but will save you significant headaches and hassles in the event of a claim.

 

If you would like to find out more about purchasing this coverage, please feel free to contact our office.

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