Bailee‘s Customers Insurance

Anyone who has possession of property belonging to others is described in law as a “bailee,” and the agreement between the owner of the property (known as the bailor) and its holder is a bailment contract. In general, the law imposes a responsibility on the bailee (the holder of the property) only to use reasonable care in the protection of the property from harm. But in the case of commercial bailments, where customers pay for the bailee to perform some service on their property, there is usually the expectation that the property will be returned in good condition. So as a matter of customer good will, bailees seek to insure the property of their customers against all loss rather than merely providing legal liability insurance.