Bailee
What Is a Bailee in Business Insurance?
A bailee is a person or business left in charge of someone else’s property for storage, repair, or safekeeping.
If your job includes care, custody, or control of a client’s stuff, you’re the bailee.
- Care: looking after it
- Custody: keeping it safe
- Control: managing or directing what happens to it
Example: A mechanic agrees to take charge of a customer’s car to fix it — that makes the mechanic the bailee. If it’s stolen from their parking lot, the mechanic is on the hook for the loss. Until a client’s stuff is back in their hands, it’s the bailee’s responsibility.
Examples of Businesses That Often Need Bailee Insurance
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| Industry | Situation | Why They Need Bailee Insurance Coverage |
|---|---|---|
|
Pet Business |
A dog walker agrees to drive a client’s pup to a grooming appointment. |
Ruffles is in your care until she’s delivered safely back home. |
|
Retail & Apparel |
A jewelry store keeps a necklace for cleaning. |
The necklace is under your protection until it’s returned. |
|
Automotive & Transportation |
A mechanic holds a client’s car for repairs. |
You’re responsible for the vehicle’s safety while it’s with you. |
|
Hospitality & Lodging |
A hotel stores luggage for guests before check-in. |
Suitcases (and everything inside them) are entrusted to you. |
|
Technology & Electronics |
A phone repair shop takes in a cracked smartphone. |
The shop is expected to keep the phone safe until it’s fixed. |
|
Art & Collectibles |
A gallery stores a painting before shipping to the buyer. |
Valuable artwork is in the gallery’s custody until it moves on. |
|
Specialty Services |
A moving company stores furniture before delivery. |
The client’s belongings are your responsibility until hand-off. |
What Are Some Examples of Bailee Liability Risks?
| Bailee | What Could Happen |
|---|---|
|
Pet Care Pros (pet groomers, sitters) |
A groomer trims a client’s husky and accidentally nicks his ear. Because Buddy was in the groomer’s custody, the vet bill is her responsibility. |
|
Fitness Pros (gyms, trainers) |
A personal trainer stores his client’s custom equipment in his studio between sessions. A flood damages the equipment. Since it was in the trainer’s care, he’s liable. |
|
Cleaning Businesses |
A commercial cleaning company takes rugs to its facility for deep cleaning. A water leak ruins them during storage, so, as the bailee, the cleaning company is at fault. |
|
Event Vendors |
A wedding planner agrees to store a client’s heirloom tableware. Some items are broken before the big day, so the planner is responsible. |
|
Musicians & DJs |
A DJ holds a client’s rare vinyl collection to digitize. A fire destroys it while in the DJ’s possession. The DJ is liable for the loss. |
|
Artists & Crafters |
A jeweler repairs a customer’s vintage ring. If it’s stolen from the jeweler’s workshop, she’s legally on the hook to pay. |
Not sure where to draw the line for taking care, custody, or control of your client’s property? Check with your insurance company and ask whether your general liability or equipment insurance includes or excludes bailee insurance coverage.
Get tailored coverage by selecting your industry below.