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The Care Custody & Control Exclusion

When installing a surface product at a customers home or business be aware that general liability insurance policies will not cover damage your customer’s property, that is in your “care, custody or control”. Although this exclusion may have been intended to eliminate coverage for property you are working on (arrangements in which you take possession of another's property for repair or servicing), many insurance companies adopt a broader scope to include property of your customer that you have to move because it’s in the way.

Examples:

  • Covered - If you knock over a lamp while carrying a countertop into a work area it’s covered by your liability insurance.
  • NOT Covered - If you move the same lamp because it’s in the way and drop it, it may not be. As a general rule, if you touch it you’re responsible for it.

So, how can you be protected for customer property damage? Most Installation Floater coverage forms include not only your installation but property of others that IS in your “care, custody or control”. In either case, don’t expect your insurance company to pay full replacement cost if the property can’t be repaired. They will depreciate the loss based on the age of the property. That may not satisfy your customer who then has to make up the difference or will look to you for that difference.

If you are looking for more information concerning this topic or if you have questions about business property-casualty insurance in general please contact me toll free at 877-213-8875 or e-mail kfrancis@easterninsurance.com

Kevin Francis
Certified Insurance Consultant
Eastern Insurance Group




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