Care, custody, and control refers to a type of exclusion that is common in liability insurance. A care, custody, and control exclusion on a liability policy means that the insurer is not obligated to provide coverage for situations where the insured has another's property in their care, custody, or control. This often includes rented property and property that is being temporarily stored on the policyholder's premises.
Commercial general policies often only cover property that the policyholder owns. That is why the property of other people is often excluded through care, custody, and control clauses. For example, if a restaurant owner lets a food supplier store loading equipment temporarily at the restaurant and that equipment gets damaged or stolen, the restaurant owner's insurer won't cover the losses if there is a care, custody, and control exclusion in the policy. These types of losses can be covered by other types of insurance, such as motor truck cargo and garage keeper's insurance.
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