Companies that refurbish, repair or store customer-owned possessions may benefit from purchasing bailee insurance coverage in the event that those items become damaged. Here we will discuss the information you need to know to fill out a bailee insurance application.
The Businesses That Require Bailee Insurance
Here are a few of the following types of businesses that often require this type of coverage.
- Valet services
- Banks-Dry Cleaners or tailors
- Storage unit facilities
- Warehouses-Repair shops (auto, computer, watches, etc.)
Which Liabilities Are Covered in Bailee Insurance?
It’s important to note that bailee insurance does not cover damaged customer possessions if the damage occurs from an employee or owners negligence. However, this type of insurance does apply to the following types of liabilities.
- Power surges from lightning
- Wind damage
- Floods or water damage
- Burglary or robbery
Applying for Bailee Insurance
When filling out a bailee insurance application, bring along any information you may have about your company, property or employees so that they may be referred to as you proceed. The information you need will include the following.
- Basic company details (name, type, address, etc.)
- Percentage of the type of work performed
- Average service charge, service length and value per order-Building details (construction type, age of building and protection class)
- Security details
- Fire details
- Storage details
- Limits of insurance and deductible (customer possession on the premises, away from, in transit, in storage or total at any one occurrence)
- Previous insurance carrier, losses or past claims