Care, custody, and control is an exclusion found in liability insurance policies that removes indemnification for the insured when a property is placed in the care of the insured. The care, custody, or control (CCC) exclusion generally applies to property that is not owned by the insured, such as rental equipment or goods being transported.
Breaking Down Care, Custody Or Control (CCC)
Commercial general liability policies often contain several exclusions. Coverage typically applies to property that is owned by the insured party, or otherwise specifically listed in the insurance policy language. Other property, such as rented property, is often left uncovered by care, custody or control exclusions.
Whether property falls under care, custody, or control exclusion may vary on a case-by-case basis. If a claim is filed, courts will consider the facts of the case to determine if the exclusion applies. The exposure that triggers the CCC exclusion is created by having someone else’s property in your possession. The exclusion applies only to personal property, not real property such as buildings or permanently attached fixtures. Real property is a separate item in your liability policy.
How Care, Custody or Control Is Defined
The exclusion applies if any of the three terms are true—not all need to be met. The three terms are defined as:
- Care: To have temporary charge, or temporarily to have the responsibility of watching over the property
- Custody: Implies safekeeping of property
- Control: Refers to having power over property
This exclusion has many nuances, and there is no one-size-fits-all answer to what is excluded by the CCC exclusion. Small changes in circumstances can result in a different determination as to whether the property is in the care, custody, or control of the insured.
For example, a delivery truck driver is charged with picking up an order of apples from an orchard. This process requires the orchard manager to load the apples into the trailer – he is the only one who's authorized to do so. The driver is the only party allowed to reposition the truck. During loading, if a piece of equipment damages the trailer, the orchard manager’s liability insurance provider may deny coverage because the trailer was damaged while under the care, custody or control of the orchard manager, even if the truck caused the damage.
While care, custody, or control exclusions remove coverage for property, other insurance coverage options offer protection. For example, long-haul truckers can purchase insurance to cover damage to trailers that are attached to their truck.