From jewelry stores to valets, many companies create bailments during their everyday businesses. When they do, they expose themselves to legal liability that other organizations often easily avoid. To help mitigate risk and control costs, smart business owners often choose to purchase bailees insurance coverage.
Creating a Bailment
Companies often must create bailments as part of their daily business operations. That is, when a representative of a company accepts someone’s personal property, the company may be legally obligated to maintain it in good order and return it to the individual in the same condition. While some companies successfully disclaim bailments, most business owners choose to buy insurance coverage to protect items while they are in the company’s possession.
In many instances, companies acquire a customer’s personal property to repair it. Of course, while trying to fix a problem, damage may occur. Other times, companies agree to store personal property. When they do, items may sustain damage from fire, flood, infestation or other causes. By working with an experienced insurer, savvy company owners purchase a comprehensive policy that protects customer property during the bailment relationship.
Trying to balance customer service with company protection can be challenging without the right resources. With bailees insurance coverage, many company owners receive the peace of mind they need to do business with confidence.