Bailee's Customers Insurance

AAA

DEFINITION of 'Bailee's Customers Insurance'

Insurance coverage for legal liability resulting from damage or destruction of a bailor's property while temporarily under the care or custody of a bailee. A bailee is a person or organization that has temporary possession of someone else's personal property (dry cleaner, parking valet, jewelers, repairers, etc.)

The coverage includes property that is on, or in transit to and from, the bailee's premises. Events and perils covered include fire, lightning, theft, burglary, robbery, explosion, collision, flood, earthquake and damage or destruction in the course of transportation by a carrier. The insurance is in effect when the bailee issues a receipt to the bailor for the item. Coverage excludes property belonging to the insured bailee and loss due to vermin and insects.

INVESTOPEDIA EXPLAINS 'Bailee's Customers Insurance'

When a customer (bailor) takes a suit to the dry cleaner to be cleaned, the suit is temporarily under the control of the bailee (dry cleaner). The bailor expects the suit to be returned in good condition. If the suit is stolen from the cleaner or is damaged while under the care of the cleaner, the insurance would cover the loss.



RELATED TERMS
  1. Business Insurance

    Insurance coverage that protects businesses from losses due to ...
  2. Insurance Claim

    A formal request to an insurance company asking for a payment ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Finite Risk Insurance

    An insurance contract in which the insured provides a pool of ...
  5. Advertising Injury Coverage

    A component of commercial general liability insurance that protects ...
  6. Surplus Lines Insurance

    A policy that protects against a financial risk that is too high ...
RELATED FAQS
  1. What is a convertible insurance policy?

    A convertible insurance policy is a term usually related to life insurance. To understand a convertible policy, you must ... Read Full Answer >>
  2. Why is my insurance premium so high/low?

    Insurance premiums can be affected by many factors including: type and amount of risk size of deductible amount of coverage age ... Read Full Answer >>
Related Articles
  1. Home & Auto

    Preparing Your Finances From Natural Disasters

    Use these easy tips to protect your financial interests from natural disasters.
  2. Insurance

    15 Insurance Policies You Don't Need

    Learn how to save money by saying "no" to unnecessary coverage.
  3. Insurance

    Life Insurance: How Much Does Age Raise Your Rate?

    If you need life insurance, try to get it before your next birthday. Here's why.
  4. Retirement

    Healthcare: What Are You Really Paying For?

    Long-term care costs rise fast and long-term care providers bundle services together, making it tougher for families to understand what they are paying for
  5. Retirement

    4 Myths You Don’t Know About Medicare

    Here are four common misconceptions about Medicare, the federal government’s health insurance program for people who are 65 and older or disabled.
  6. Professionals

    Does the Middle-Class Need LTC Insurance?

    Long-term care insurance is as expensive as it is necessary for many people, but is it right for all financial advisor clients?
  7. Insurance

    What Happens If Your Insurance Company Goes Bankrupt?

    When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.
  8. Insurance

    Which States Have the Cheapest Home Insurance?

    You can't choose where you live by its insurance rates. But if you did, these are the states to pick.
  9. Insurance

    Obamacare Penalty: What Actually Happens (& When)

    If you didn't have health insurance last year – or miss this year's deadline – how is the Affordable Care Act penalty enforced?
  10. Insurance

    Beat The Deadline! Cheap Choices in Health Insurance

    Sign up by February 15 - or else pay 2015's higher tax penalty. If you miss the deadline, there are exceptions.

You May Also Like

Hot Definitions
  1. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  2. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  5. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  6. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
Trading Center