An insurance policy which protects the insured against liability incurred when his negligent actions result in the destruction of property which is in his care, custody or control.
*****
US: Liability of a firm or person for fire damage caused by negligence of and damage to property of others.
*****
Property in the care, custody, or control of an insured is normally not covered under liability insurance policies. Fire legal liability removes this exclusion for those who occupy leased or rented property.For example, if a restaurant rents a space in a strip shopping center and, due to the negligence of the restaurant a fire starts and destroys the shopping center, the restaurant’s general liability policy will pay for all of the damage except to the space the restaurant occupied. This is because this space is under the insured’s care, custody, and control.
If the restaurant purchased fire legal liability, the damage to the space the restaurant occupied is also covered. Most renters’ policies for individuals include fire legal liability. Businesses that rent space may need to add the coverage. (See Care, Custody, and Control Exclusion).
*****
Public liability policies routinely exclude coverage for damage to property in an insured’s care, custody, or control. This leaves a big gap in a tenant’s coverage, a gap partially filled by an exception in the commercial general liability policy that restores limited coverage for fire damage to the landlord’s building. Perhaps the best benefit of the exception is to call attention to the exposure so arrangements can be made for broader coverage at appropriate limits. Sometimes referred to as fire damage legal liability.