Reasons Behind Bailee Coverage for Transportation Specialists
As a bailee in the transportation industry, you temporarily assume control and take possession of a customers’ property as part of your day-to-day functions. In doing so you take on a considerable amount of risk in providing a service to safeguard and protect your clients merchandise while it is in your custody and control. You are not likely to be in actual control of such cargo as it travels to different locations and destinations but you maintain responsibility for its safekeeping.
Having bailee coverage protects you in the event that the merchandise in your care winds up lost, damaged, or stolen. The policy responds to physical loss or damage of property in your care, custody or control, without regard of negligence. The transportation industry remains one of the integral parts of commerce in the US as well as the world. Without it, goods would not be available in cities and towns across the nation and this would reduce potential sales of such items totaling costs in the billions.
The definition of bailee coverage
Bailee coverage can be described as inland marine coverage on property entrusted to the insured for storage, repair, or servicing. It is typically purchased by businesses such as dry cleaners, jewelers, repairers, furriers, etc. It is considered one of the most often overlooked, but vital coverages available. Bailees coverage is vital for any business that has the property of others in their care while performing work for that customer. For example, if a customer entruststheir contractors with the removal and care of property, in their home while repairs are performed, the contractor would be the bailor.
This type of insurance coverage includes property that is on the bailees premises or is in transit to or from different locations. Numerous covered perils are typically included in bailees insurance, for example, damage due to fire, explosion, flood, earthquake, lightening, burglary, theft, robbery, collision, or destruction or damage resulting from transportation.Coverage commonly excludes damage to property as a result of insects or vermin.
Obviously, customer satisfaction is at the core of any successful enterprise and bailee coverage is a type of guarantee that, should anything go wrong, there will be compensation for losses that occur.