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Bailee

One who has possession of another’s property under contract of bailment or agreement. A bailee for reward receives payment (e.g. garage owner for repairing a car) and must use the care that a prudent man would use over his own goods. Where there is no common benefit the person in possession is a gratuitous bailee who must exercise the care that a vigilant person would over his own goods. Bailees for reward may seek to exempt themselves or limit their liability. See UNFAIR CONTRACT TERMS ACT 1997.
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One who is charged with the care of the property of another. For example, a garage is the bailee of a customer’s (bailor’s) car (the bailment) and a jeweler is a bailee of customers’ jewelry while in its possession for repair or appraisal.
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One who has the custody of the property of another. Bailee “for hire” have certain responsibilities to care for the property of others that is in their custody.
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A person who holds the property of another person (the bailor) under a contract or agreement according to which the property held is to be returned to the bailor or delivered somewhere to his order. A bailee for reward is paid for his services.
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A person or concern having possession of property committed in trust from the owner.

Bailee clause

Institute Cargo Clause obliging the insured to ensure that his rights against the shipowner or other bailees are not allowed to lapse by reason of his tardiness in lodging a claim or any other default. The insurer is entitled to avoid claims where their subrogation rights have been prejudiced by the conduct of the insured. The insurer is not liable for expenses incurred by the insured in complying with the clause.

Bailee’s Customers Policy

Property entrusted to an insured for storage, service, or repair is generally excluded from coverage by most commercial insurance. This exclusion is known as the “care, custody, and control” exclusion. Businesses that engage in these activities may purchase an inland marine policy known as bailee’s coverage to guard against this exposure.For example, if a dry cleaners burns to the ground, there is no coverage for the customer’s clothes under the cleaner’s standard fire or liability policy. This exposure is covered with a bailee’s policy. Other businesses that commonly purchase this coverage include jewelers, appliance repairers, furriers, and automobile service and repair shops. (See Care, Custody, and Control).