Who is considered a Bailee in the context of property insurance?

In the context of property insurance, a Bailee refers to a party who possesses property belonging to another individual and has a responsibility for its care and safekeeping. This relationship typically arises when the property is entrusted to the Bailee for a specific purpose, such as storage, repair, or transportation. The Bailee is expected to exercise a reasonable level of care over the property while it is in their possession.

For example, if a person takes their car to a mechanic for repairs, the mechanic becomes a Bailee of the car. The mechanic has an obligation to take care of the car and ensure it is returned in its original condition after the service is completed. This concept is crucial in understanding liability and insurance coverage since the Bailee may be held responsible for loss or damage that occurs while the property is under their care, thus affecting insurance claims and policies.

The distinction here is important: the owner of the property retains ownership, while the Bailee assumes temporary possession and care. Understanding this role helps adjusters evaluate claims accurately based on who had control of the property at the time an incident occurred.