Does the insurer cover any party that holds, stores, or moves property for a fee?

Does the insurer cover any party that holds, stores, or moves property for a fee?

• A. Yes
• B. No
• C. Only if named in policy
• D. Only for high-value items

Answer: (B)

Property policies cover the insured’s own property while it’s in the insured’s care, custody, or control. They do not automatically extend coverage to third parties who hold, store, or move property for a fee. Those third parties are bailees, and losses that occur while the property is with a bailee are generally excluded unless the policy includes a specific bailees endorsement or separate coverage. So, without that special coverage, the insurer does not cover a party that handles the property for hire. The other options imply there’s automatic or value-based coverage for bailees, which isn’t the case.

Property policies cover the insured’s own property while it’s in the insured’s care, custody, or control. They do not automatically extend coverage to third parties who hold, store, or move property for a fee. Those third parties are bailees, and losses that occur while the property is with a bailee are generally excluded unless the policy includes a specific bailees endorsement or separate coverage. So, without that special coverage, the insurer does not cover a party that handles the property for hire. The other options imply there’s automatic or value-based coverage for bailees, which isn’t the case.