Furriers’ Customers Policy
What is 'Furriers’ Customers Policy'
A furriers’ customers policy is an inland marine insurance policy that provides coverage against loss or damage to furs that are being stored by a business on behalf of a third party. Furrier’s customers policies provide coverage beyond the ordinary care that a storage company is expected to provide with respect to the property of its customers.
BREAKING DOWN 'Furriers’ Customers Policy'
Furrier’s customers policies are designed specifically for businesses that store furs and garments trimmed with fur owned by third parties. The total amount of coverage required, depends on the number of furs held in storage and the value of the furs according to the bailor.
Businesses operating warehouses, including furriers, often agree to provide liability coverage for the items they hold in storage, which increases their liabilities beyond what is typically expected of a bailee. When a business operating a warehouse agrees to store the property of a third party, it is generally only held liable for damages or losses caused by its own negligence. For example, a business that doesn’t hire security personnel to guard expensive goods held in its warehouse is likely to be held liable if thieves steal the goods. However, if a flood damages the goods the business is less likely to be held liable as long as it took due care to store the goods properly. The relationship between the storage business and the third party whose goods are being stored is referred to as that of a bailor and bailee.
Furrier's Customer Policies vs. Furrier's Block Policies
Furrier’s customer policies differ from furrier’s block policies in that the former only covers loss or damage to furs owned by customers and not furs owned by the business that purchased the policy. For example, a furrier who has a specialty storage unit designed specifically for furs would have to purchase a furrier’s customer policy in addition to a furrier’s block policy in order to protect both its furs and the furs of its clients held in storage.
In addition, furrier's block policies specifically exclude businesses that have unfinished fur garments, and are thus more appropriate for businesses that are fur retailers or that sell fur wholesale. This type of policy has traditionally been difficult to underwrite because furs are expensive and susceptible to damage. More recently, campaigns against the use of furs has increased the risk of vandalism. Coverage extends to both retail locations and storage locations, as well as the transport of furs. Furrier's customer policies only provide coverage for businesses storing furs for a third party.