Bailment

What Does Bailment Mean?

Bailment occurs when a bailor temporarily transfers possession of property to another party, the bailee, for a specific period. Bailees often purchase bailee’s customer insurance to protect the assets that are temporarily under their care.

Insuranceopedia Explains Bailment

There are many potential risks to property while a bailee is responsible for 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 incur a loss if the car is stolen or if an accident occurs within the garage. In such cases, bailee’s customer insurance can cover the losses sustained.