12 - Care, Custody and Control

A company is responsible for third party property on their premises, or in their care/control. If the property is lost, stolen, damaged, affected by fire or smoke etc., the owner can claim under the insured's General Liability policy for the value of repair or replacement if the policy has a CC&C Extension. Stock, equipment, tooling or even buildings can be CC&C exposures. CC&C does not cover a Bailee to whom goods are legally entrusted for a specific purpose, eg an auction house (Bailee’s Liability is a separate policy).

What do we look for?

Exposures

  • Leased equipment on premise.
  • Valuable stock/materials on consignment on premise.
  • Repair/refurbishment operations for expensive equipment on premise.
  • Customer-owned molds/dies/tooling on premise.
  • Leased equipment, stock/material, molds, dies, and/or tooling inadequately protected from fire, flood, water incursion, theft, etc.

Controls

  • No, to limited leased equipment n premise.
  • No, to limited valuable stock/materials on premise.
  • No, to limited repair/refurbishment for expensive equipment on premise.
  • No, to limited customer owned molds, dies, and/or tooling on premise,
  • Leased equipment, stock/materials, dies, molds, tooling adequately protected via fire protection systems, water and temperature monitoring, good physical security, supervised intrusion detection systems etc.

  • Buy stock or raw materials on extended terms rather than have consignment goods owned by a supplier on the premises, or have the owner take out Consignment Insurance on the goods.

  • Record any indelible identification numbers and take photos of expensive leased equipment or consignment stock to assist in recovery if stolen.

  • Upgrade security to reduce theft and arson exposures.

Useful Resources