Today, the world has become more competitive for businesses, along with the increased litigation risks. It is imperative for businesses to have commercial general liability insurance to protect themselves against the financial consequences arising from various risks. The type of liability risks may vary depending on the nature of the business, the industry it belongs to, and many more factors. Many businesses face the Bailee’s risk and need Bailee’s Liability Cover. The insurance industry hence offers personalised or customised CGL insurance for businesses which allows them to include many potential liabilities in the policy coverage. Bailee’s Liability Cover
What is Bailee liability insurance cover?
Bailee’s liability insurance grants you protection against liability claims that may arise when the goods you store on behalf of others become damaged or lost. Bailee is an organisation or a person who temporarily keeps someone else’s goods or property in possession. A Bailee bears legal responsibility for damages or loss caused to someone else’s property while it is in their possession. Bailee liability insurance coverage provides coverage against the risk of such legal liabilities.
How does Bailees liability insurance work?
Let us understand Bailee’s liability insurance with an example. Let us say you have an auto repair shop. You will have the customer’s car temporarily at your shop for the repair work. Regrettably, your repair shop’s fire damages a customer’s car. You are liable for the damage to the customer’s car. The liability arising from the damage to the customer’s car lies with you. This is when Bailee’s liability insurance coverage under your commercial general liability insurance comes into play, as the policy gives you financial protection against liability. Bailee’s Liability Cover goods at their premises against fire, explosion, lightning, earthquake, flood, damage, and destruction.
Who needs Bailee’s liability insurance coverage?
Various types of businesses are exposed to the risk of bailee’s liability. Hence, it is important for such businesses to include Bailee’s liability insurance coverage under their CGL policy. The following are some of the businesses that require Bailee’s liability insurance coverage:
- Self-storage operators
- Jewellery shops
- Banks
- Warehouses
- Musical instrument shop
- Auto repair shop
- Mechanics
- Restaurants with valet services
- Storage units
- Computer repair shops
- Couriers
- Tailor shops, etc.
For these businesses that have potential bailee’s liability risk, it is crucial to add the Bailee liability cover to their package of business insurance policies, such as commercial general liability insurance coverage. However, some of the commercial general liability insurance may provide coverage for loss due to Bailee’s negligence act and may not provide coverage for Bailee’s liability when the loss is due to natural disasters. Hence, it is important to check with the insurance provider on the limitations of the CGL policy, terms, and conditions before you make a purchase decision.
A commercial general liability insurance policy can be considered comprehensive business insurance that can provide protection to your business against various risks and lawsuits. It covers personal injury, property damage, reputational harm, and medical expenses arising from business operations, products, services, or premises. The CGL policy also covers the legal cost of defending the lawsuit.
Commercial general liability insurance policies can be tailored to your needs. Consider the specific aspects of your business, such as the nature of work, property, types of equipment, physical premises, customers, and employees, to assess the business-specific risks to customise and avail the right type of CGL insurance coverage. Having customised CGL insurance can sCield your business from financial catastrophes. Protect your business with the right insurance coverage to let it grow substantially.
