Care, Custody, Or Control (CCC)

DEFINITION of 'Care, Custody, Or Control (CCC)'

An exclusion found in liability insurance policies that removes indemnification for the insured when a property is placed in the care of the insured. 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 a number of 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 a 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. In general, “care” means that the insured is responsible for the property, “custody” means that the property is accounted for by the insured, and “control” means that the insured is responsible for the management or oversight of the property. Some courts may use a test based on whether the insured was in possession of the property at the time of loss, and whether the property was necessary to conduct business operations.

For example, a delivery truck driver is charged with picking up an order of oranges from a farmer. This process requires the farmer to load the oranges in the trailer, and only the farmer is authorized to load the trailer. The driver is the only party allowed to reposition the truck. During the course of loading, a piece of equipment damages the trailer. The farmer’s liability insurance provider may deny coverage because the trailer was damaged while under the care, custody, or control of the farmer, even if the truck driver was responsible for the truck.

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.