What Does Bailment Mean?
Bailment is when a bailor gives temporary possession of a property to another party, the bailee, for a specific period of time. Bailees often purchase bailee’s customer insurance to insure the assets that are temporarily under their care.
Insuranceopedia Explains Bailment
There are many things that can happen to property while a bailee is watching over it on behalf of a bailor. For example, if a bailor leaves a car in a parking garage, the bailee (the parking garage company), could experience a loss if the car is stolen from the garage, or if an accident occurs in the parking garage. In these situations, bailee’s customers insurance can cover the losses incurred.