What’s a bailee’s customer policy?
A bailee’s customer policy covers property that belongs to your customers while it is in your care, custody, or control. A bailee is any business that temporarily takes possession of someone else’s belongings to work on them or store them. When that property is damaged, lost, or stolen on your watch, this policy pays to repair or replace it, even when the loss is not legally your fault.
Which Georgia businesses need a bailee’s customer policy?
The businesses that need this coverage most are those whose operation revolves around handling other people’s property:
- Dry cleaners and laundromats
- Jewelry and watch repair shops
- Auto repair garages and detailers
- Furniture restorers and upholstery shops
- Electronics repair shops and phone repair kiosks
- Tailors, alterations shops, and shoe repair businesses
- Self-storage facilities and warehouses that accept customer goods
For example, a phone repair shop in Duluth holds dozens of customer devices at any given time. If a break-in or fire destroys those devices, the shop owner faces the cost of replacement without a bailee’s customer policy in place.
Why does general liability not cover customer property?
A standard general liability policy excludes damage to property in your care, custody, or control. That exclusion is written directly into most commercial general liability forms. If a fire, burst pipe, or break-in destroys customer goods on your premises, general liability typically pays nothing toward replacing those items. The loss falls on the business unless a bailee’s customer policy is in place.
For example, a dry cleaner in Smyrna suffers a small electrical fire overnight. Customers had dropped off $15,000 worth of clothing. The general liability policy excludes those garments entirely. A bailee’s customer policy steps in to reimburse customers, protecting both their property and the shop’s reputation with clients who trusted it with their belongings.
What perils does a bailee’s customer policy cover?
Coverage typically applies to a broad range of perils, including fire, theft, water damage, and vandalism, though the exact scope depends on the policy form. Some policies cover losses regardless of fault; others apply only when you bear legal liability. The distinction matters, so the policy language is worth reviewing carefully with a licensed advisor who can match the form to your operation.
How does a bailee’s customer policy work alongside a business owners policy?
Bailee’s customer coverage often pairs well with a business owners policy (BOP), which bundles property and liability protection for small and mid-sized businesses. Adding bailee coverage, either as an endorsement to a BOP or as a standalone policy, closes the customer-property gap that a BOP alone leaves open. A jewelry repair shop and a dry cleaner both need a BOP for their own property and operations, plus bailee coverage for what belongs to customers while it is in the shop.
How much bailee’s customer coverage does a Georgia business need?
The right limit depends on the peak value of customer property your business holds at any one time. A jewelry repair shop carrying $80,000 in watches and rings on a given day faces a different exposure than a shoe repair shop with a few dozen pairs of boots. Tracking the maximum value of customer goods in the shop at any point during the year is the starting point for setting an adequate limit. A free coverage review with our team can confirm whether your customers’ property is protected while it is in your hands, and flag any gaps in your current policy before a loss makes them visible.