Business owners who are new to the cargo and transport business often have questions regarding bailee coverage. While the basics of it may seem obvious to some, not knowing can put your business in jeopardy. Here are a few questions to which everyone in the cargo and transport industry should know the answers.
What’s a Bailee?
A bailee is a person or organization that is takes temporary possession of a piece of property from another person or organization, who is called the bailor. For instance, a warehouse storing cargo would be the bailee while the cargo owner would be the bailor.
Doesn’t My Insurance Already Cover This?
In the cargo and transport business, the bailee assumes responsibility for the property. A general liability policy does not cover items in your care, custody, or control. This means a bailee is liable in most cases for the damage or loss of this property.
What Kind of Insurance Do I Need?
While this is the most important question, it is not a simple one to answer. Unlimited bailee coverage (which covers a business without need of property value estimates) can be useful for some but unavailable for others. An insurance company specializing in this industry is your best resource regarding this question.
Getting the correct bailee coverage can give you peace of mind. Not only does it protect your business, it protects your clients’ companies as well. Knowing that property is insured builds confidence in everyone with whom you do business.