BAILEE CUSTOMERS COVERAGE
is used to insure bailment situations. In a bailment, one person accepts goods from another and promises to return them to that person in the same condition or better. This creates both a contractual obligation and a goodwill obligation. Bailee customers coverage is a form offered by many inland marine insurance carriers. Coverage may be limited to only the insured's legal liability or it may cover for loss or damage by a covered cause of loss whether or not the insured is legally liable. Valuation may be on an actual cash value or a replacement cost basis. Coverage can be purchased for the property involved while it is being worked on or not. Coverage may be for risks of direct physical loss or damage or for designated perils only. Coverage applies at the insured's premises, in transit or at another premises performing services on behalf of the insured.