Care, Custody, And Control
What Does Care, Custody, And Control Mean?
“Care, custody, and control” refers to a common exclusion in liability insurance. This exclusion means that the insurer is not required to provide coverage for situations where the insured has possession of another party’s property under their care, custody, or control. This typically applies to rented property or property temporarily stored on the policyholder’s premises.
Insuranceopedia Explains Care, Custody, And Control
Commercial general liability policies typically cover only property owned by the policyholder. As a result, property belonging to others is often excluded through care, custody, and control clauses. For instance, if a restaurant owner allows a food supplier to temporarily store loading equipment at the restaurant, and the equipment is damaged or stolen, the restaurant owner’s insurer will not cover the loss if the policy includes a care, custody, and control exclusion. Such losses can, however, be covered by other types of insurance, like motor truck cargo insurance or garage keeper’s insurance.
