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Bailment

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.

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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.

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