Business Personal Property of Others: Insuring It Properly Involves Many Considerations


Adjusters International Disaster Recovery Consulting

25 years in publication

Business Personal Property of Others: Insuring It Properly Involves Many Considerations

By Donald S. Malecki, CPCU


From leasing to repairing, safekeeping to servicing, the variety of situations in which one business can find itself possessing the property of another is virtually unlimited. With such possession comes risks and responsibilities for which the right insurance protection is a must.

But what coverage is best? Why isn’t inland marine insurance the obvious choice? Are there differences in covering leased versus non-leased personal property? What causes of loss are covered? How does the legal liability coverage form come into play?

These and other factors to be considered when insuring the business personal property of others are discussed in this enlightening article by insurance expert, author and educator Donald Malecki. As part of his analysis, he identifies the most common problems or challenges to be overcome in effecting this protection successfully.

It is relevant, informative reading for all whose responsibilities encompass financial, insurance or risk management in today’s business world.

Sheila E. Salvatore Editor

Bailment situations — where personal property owned by a pßerson or entity is temporarily in the care, custody or control of another person or entity — are very common for businesses today. If one ponders the types of businesses involved in bailments, such as for leasing, safekeeping, or for performing some kind of cleaning, repairing or servicing of personal property, it is an infinite number.

In these bailment situations, the person who owns the personal property or has legal title to it is referred to as the bailor; the one who has temporary possession is the bailee. In the business world, these...