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. Investment Income Ratio

    The ratio of an insurance company’s net investment income to ...
Related Articles
  1. Retirement

    Holding Titles On Real Property

    Find out how best to claim and convey ownership on your assets.
  2. Home & Auto

    The History Of Insurance In America

    Insurance was a latecomer to the American landscape, largely due to the country's unknown risks.
  3. Investing Basics

    Fine Art Can Be A Fine Investment

    The art market is fickle, and there are no guarantees of profitability, but with a little legwork and forethought you can fill your home with images that may prove worthy investments down the ...
  4. Insurance

    What are some examples of unexpected exclusions in a home insurance policy?

    Learn about commonly excluded perils with different standard insurance policies. Explore events that homeowners should consider when purchasing insurance.
  5. Four key factors to check out before you just sign up for dental insurance. The coverage could be really worth it – or not.
    Insurance

    Does That Dental Insurance Have Cavities?

    Four key factors to check out before you just sign up for dental insurance. The coverage could be really worth it – or not.
  6. These days, those attending college have plenty of ways to get affordable medical insurance, from student health plans to those sold on an exchange.
    Insurance

    4 Smart Ways To Get Health Insurance In College

    These days, those attending college have plenty of ways to get affordable medical insurance, from student health plans to those sold on an exchange.
  7. First time stock investors may ask, is there any way to buy insurance on stocks to prevent losses?
    Options & Futures

    Stock Safety: Top 3 Ways to Limit Your Losses

    First time stock investors may ask, is there any way to buy insurance on stocks to prevent losses?
  8. Investors can use derivative securities to effectively buy insurance on their individual holdings or on their portfolio as a whole.
    Options & Futures

    Can You Buy Stock Insurace? 3 Strategies to Limit Stock Losses

    Investors can use derivative securities to effectively buy insurance on their individual holdings or on their portfolio as a whole.
  9. Insurance

    What are the tax implications of a life insurance policy loan?

    Learn the instances in which you are required to pay taxes on a life insurance policy loan, so you can avoid making a costly mistake.
  10. Term or whole life insurance is usually a better deal than burial policies. Here's why.
    Insurance

    Is Burial Insurance A Ripoff?

    Term or whole life insurance is usually a better deal than burial policies. Here's why.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center