If you operate a company where people are always leaving their personal property with you, you may encounter a bailee insurance application. If you aren’t familiar with the bailment process, you might find the form intimidating. Here is what you need to know before signing on the dotted line. Bailment protection can protect you while you work with items that aren’t yours.
Bailment protection can protect you while you work with items that aren’t yours.
In a bailment process, one individual temporarily surrenders custody of his personal property to another. The original owner is considered the bailor, and the one receiving the item is called the bailee. Within this exchange, there is typically a contract representing the cause or nature of the exchange and the expectations of both parties. This could include watch repair on the account of the bailee, and settling the bill as the responsibility of the bailor.
The following businesses should consider bailee insurance:
- Dry cleaners
- Storage units
- Restoration services
Because of the potential for damage, theft or other incidents involving the belongings in question, filling out a bailee insurance application and getting approved will cover any items that have been left in your possession. Because the property you are servicing does not belong to you, it does not fall under general liability insurance.