Generally, liability for damage to property the insured cares for is in the custody of the insured or controlled by the insured is excluded. For example, suppose an auto repair shop, due to the negligence of an employee, drops a car off a rack and damages it. There is no coverage under the basic garage liability insurance policy because the automobile was in the “care, custody, and control” of the insured.This exclusion can often be modified with endorsements designed for businesses and individuals who regularly have the property of others in their care, custody, and control. (See Bailee’s Customer Policy).
***
See: Custody And Control.

A frequent liability Insurance exclusion denying coverage of the insured’s liability for damage to others property while in the Insureds, care custody or control.

A category of property typically excluded in liability policies. Items considered to be in the care, custody, and control of the insured are typically not covered by liability policies because they either belong to the insured and are therefore better covered under property insurance, or the item is with the insured because he or she is the bailor of this property. In that case, the property is better covered under a bailor or baillee’s insurance form.

An expression common to liability insurance contracts. It refers to an exclusion in the policy eliminating coverage for damage to property of others that is in the insured’s care, custody, or control. The insured has a bailee relationship to the property, in other words, making the insured liable for the care of the property beyond damage caused by negligence. A bailees floater is often used to cover the insured’s obligation for the care of such property.