Repair Shop Owners Can Benefit from Bailee Liability Insurance


The term “bailee” refers to anyone who temporarily holds on to property that belongs to someone else. This responsibility can belong to people involved in a variety of occupations, including valets, dry cleaners, auto mechanics, jewelers and others who retain and work on others’ belongings. People who work in these types of professions often find that bailee liability insurance is an important coverage to hold.


Why Purchase Bailee Insurance?


It goes without saying that customers who drop their belongings off at a repair shop expect them to be in decent condition when they pick them up later. At the very least, they expect that the items are no worse off than they were at time of drop off. If the items are stolen or damaged further while under the custodianship of the bailee, the customers may sue the repair shop owner. This is where bailee liability insurance comes in handy. Also known as bailee’s customers insurance, this type of coverage deals with damage to or loss of goods that are temporarily kept on the premises of a professional.


What Bailee Insurance Covers


Bailee liability insurance kicks in when customers’ personal property is damaged in certain unforeseen events. Such events include the following:


  • Robbery
  • Flood
  • Earthquake
  • Fire
  • Explosion


Damage caused by rodents or insects is not covered, nor is the bailee’s own property insured by the plan. The insurance is specifically designed to take care of extraordinary occurrences that could have a disastrous impact on property temporarily under the control of a bailee.

This post was written by , posted on June 17, 2014 Tuesday at 3:00 pm