What is Bailee Insurance?
Just when you thought Business Insurance couldn't get anymore confusing, you hear about Bailee Insurance or Bailee Liability Coverage. These policies are mainly written for dry cleaners, repair shops and many other businesses where large amounts of customer goods are in their care, custody and control.
So who or what is a Bailee? The Bailee is the person or business that has possession of the property of another. The Bailor is the owner of the property that is in possession of the Bailee.
Almost any person or business that accepts the property of others for repair, service, cleaning, storage or processing is faced with liability exposure for the value of goods received. As a business, it is important to look into this coverage. There are more and more cell phone repair companies popping up. Hopefully they have not overlooked this important coverage.
As a consumer, or Bailor, it's not a bad idea to inquiry about this coverage, if you drop your property off somewhere for cleaning, repair, servicing, etc. The Bailee might limit their liability exposure by making you sign a waiver that says they are not responsible, if something happens to your property while in their possession. If you have any questions about Baille Insurance or other Business Insurance coverage, please feel free to contact me.
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