What Does Custodian Mean?
A custodian of insurance is someone who is entrusted with the possession of a property or goods through a contract of bailment. Unlike goods transferred in a contract of sale, the custodian is legally obligated to return the property to the bailor.
A custodian is also known as a bailee.
Insuranceopedia Explains Custodian
Bailees (or custodians) are responsible for the safekeeping and return of the property to the bailor, or otherwise disposing of it based on the terms specified in the contract of bailment. Bailees owe a duty of care to the goods or property while they are under their possession.
While the bailee has responsibilities toward the property or goods, they are not authorized to make contracts on behalf of the bailor. Bailors are not liable for the actions of bailees.
Storing the property in a rented storage unit does not amount to bailment, and the holder is not considered a bailee.