Bailee liability is a necessity for any company that takes the responsibility of entering into a bailment relationship. Although the coverage required is dependent on the type of business you have, there are certain circumstances where you can be expressly held liable and others where there is no culpability whatsoever.
Private carriers have the most control over what types of bailee liability they are responsible for. Because private carriers generally do not act as full-time bailees, or holders of goods, they have more discretion at who they are liable to and how much they are liable for. They also have a right to refusal.
There are also common carriers whose primary responsibility is as bailee, and as such they have less control over what they can turn down. Their liability is higher because once a good is in their possession, the bailor, the owner of the property, has little to no ability to monitor the condition of the property in question.
In either case, bailees are not held responsible for acts of God, such as natural disasters. The extent of bailee responsibility should be clearly outlined in their liability contracts. If you are interested in knowing just how much bailee liability your company should carry, you should contact a company that specializes in your particular insurance needs.