For those who take responsibility for their clients’ property, there’s no greater liability safeguard than bailee insurance coverage. It’s important to check with your agent about the specific levels and types of protection you need, because these policies differ by broker and can be tailored to suit your requirements. The three main coverage types are:
1. Unlimited Bailee
Sometimes it can be difficult to estimate or determine the value of your customers’ possessions, especially if those items have been severely damaged or destroyed. This policy covers your company, regardless of the property value lost.
2. Damage in Process
This type of bailee insurance coverage protects you in the event that your clients’ belongings are harmed during repair or servicing. Some examples of this might be a garment stain or tear in a tailor shop or perishable food stored at the wrong temperature.
3. Unexplained Disappearance
If an employee of your business should happen to misplace or lose your clients’ property, this kind of policy would cover replacing the lost item. It should be noted, however, that this may not be the same kind of coverage required for theft.
Don’t Stop There
In addition to these three main types of bailee insurance coverage, you should also talk to your broker about your liability to cover any legal fees for claims, as well as your responsibility for removal and cleanup of any damaged materials.