Bailor

What Does Bailor Mean?

A bailor is a person who transfers assets to another party for temporary safekeeping. Property insurance should be purchased for any items given to a bailor, in case the property is damaged or lost while under their care. Businesses that routinely hold customer property, like dry cleaners or repair shops, typically carry bailee insurance to pay for damage or loss while the items are in their care.

Insuranceopedia Explains Bailor

Various types of assets, including stocks, bonds, jewelry, and cash, can be temporarily transferred to others by bailors. If the bailed property includes jewelry or other high-value items, a personal property floater added to a homeowners policy can extend coverage beyond what a standard policy will pay out. In such transactions, the bailee does not actually own the assets they receive; instead, they temporarily manage and safeguard them on behalf of the bailor.