From parking garages to auto repair shops, from dry cleaners to computer repair centers, many businesses face exposure for property they don’t actually own. If a customer’s property was damaged while in your care, most service businesses would want to provide full reimbursement to retain customer goodwill. However, general liability coverage and business owners’ policies specifically exclude coverage for property in the policyholder’s “care, custody and control.” Even when an insured cause, such as a fire, damages or destroys your customer’s property, standard commercial property policies typically provide only minimal coverage.
If the first rule of insurance is to make certain that your property is adequately covered, the second rule should be to ensure that the property of others is properly protected. It’s obvious that companies like UPS, FedEx, and PODS would need insurance for the damage of customers’ goods, but you may be unaware of just how much customer-owned property you are actually holding during a normal day.
A business that frequently handle other’s property needs specialized insurance coverage, and there are many types available to protect your business. From warehouse operator’s insurance to garage keeper’s legal liability insurance, there is a policy that will fit your specific needs. “Block” policies cover customer property damage for jewelers, fur dealers, equipment dealers, camera dealers, musical instrument dealers, and more; there are also “floaters” for laundries and dry cleaners. If you do not wish to obtain a specific policy for property under your care, you could purchase a limited liability policy, which covers only losses that you’re legally liable for.
To read more about insurance policies that protect your customer’s property while in your care, click on the July/August newsletter under the Resources tab.
To purchase specialized property insurance policy or discuss your current policies in place, contact BPJ at (417) 887-3550 or email firstname.lastname@example.org.