Consignment Insurance

AAA

DEFINITION of 'Consignment Insurance'

A class of insurance that covers loss or damage to items that are on consignment, loan, up for auction, or in the process of transfer. The insurance will pay out only if the damage or loss is incurred while the property is not currently being held, maintained, or cared for by the owner. This is a separate form of insurance from that which covers items held in-house as inventory.

INVESTOPEDIA EXPLAINS 'Consignment Insurance'

Consignment insurance is part of a broader class of gap insurance policies meant to provide coverage for times and situations where more mainstream policies would not typically pay out. Consignment insurance can cover art that is being loaned out to a gallery, automobiles being sold at a consignment dealership, items under review for auction or transfer of ownership.



RELATED TERMS
  1. Aggregate Product Liability Limit ...

    The maximum sum of money that an insurance company will pay during ...
  2. Consignment

    An arrangement whereby goods are left in the possession of another ...
  3. Title

    The right to the ownership and possession of any item that may ...
  4. Gap Insurance

    A type of auto insurance that car owners can buy to protect themselves ...
  5. Auction

    A system where potential buyers place competitive bids on assets ...
  6. Elder Law

    Elder law is a legal specialty focusing on the rights and needs ...
Related Articles
  1. Holding Titles On Real Property
    Retirement

    Holding Titles On Real Property

  2. The History Of Insurance In America
    Home & Auto

    The History Of Insurance In America

  3. Fine Art Can Be A Fine Investment
    Investing Basics

    Fine Art Can Be A Fine Investment

  4. What's the difference between renter's ...
    Insurance

    What's the difference between renter's ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center