Businesses that undertake the responsibility for cleaning, transporting, storing, or repairing their clients items also undertake the inherent risk that something may happen to those items before they are returned. That’s where bailees coverage comes in.

When You’re in Hot Water

Preventative measures and best practices have greatly improved over the years, and incidents tend to be few or minor. However, accidents do occur, and the best way to be prepared is to be fully insured. You should ask your broker for a comprehensive list of all scenarios, but damage from the following may be covered:

  • Extreme weather, such as lightning, wind, or hail
  • Accidents on or within the premises, including fire, explosions, or collisions
  • Natural disasters, such as floods or earthquakes
  • Intentional malice, including vandalism or theft
  • Transportation incidents

Bailees coverage generally protects property during transit to or from company premises, as well as when property is on site.

Other Considerations

In some cases, there may be liability beyond restoring a possession to its owner. If there are any resulting legal claims due to loss, you could be liable for certain fees. Its also possible that if there is extensive property damage, you may be responsible for any cleanup and removal costs. Talk to your broker about the best options for protecting yourself, your company, and your clients.