Insurance Insights: Insuring Customers’ Property
If your business necessitates that you take possession of your customers’ property in order to make repairs or perform routine maintenance, you will want to have insurance that covers that property while it is in your care. When a customer leaves clothing, jewelry, or other property with you for repair, it creates a “bailment” (a transfer of property without transfer of title), and you, the “bailee,” then have the duty to protect this property by exercising reasonable care. The best type of “bailee insurance” reimburses the customer regardless of the person who is at fault for damage or loss. This type of policy generates goodwill and trust between you and your customers.
Any company that regularly stores, repairs or refurbishes property belonging to its customers should carefully consider adding bailee’s coverage to their insurance package. If you have any questions about insurance, please give us a call. We work in the best interests of our clients. Are you sure which types of insurance coverage you need? Are you trying to find the security that makes the most sense for you? You can trust our experienced, professional agents to answer all of your questions and work with you every step of the way.
Quick Tip: Because defense costs are often a substantial expense incurred by a bailee when presented with a claim for loss or damage, it is important to review a bailee policy and determine whether defense costs are part of the coverage and up to what amount.