Care Custody and Control
A common exclusion in liability insurance policies that eliminates coverage for damage to property that is in the insured's care, custody, or control at the time of loss. This exclusion prevents the liability policy from covering what should be handled by property insurance.
Example
“The contractor's liability insurance denied the claim for damage to the client's roof because it was in their care, custody, and control while performing the repair work.”
Memory Tip
Remember 'CCC = Can't Claim Coverage' for property you're responsible for - liability insurance won't cover what you're supposed to take care of.
Why It Matters
This exclusion affects many businesses and individuals who handle others' property, potentially leaving significant coverage gaps. Understanding this exclusion helps you purchase appropriate additional coverage like inland marine or bailee insurance to protect against damage to property in your possession.
Common Misconception
People assume their general liability insurance covers any damage they cause to others' property, but the care, custody, and control exclusion eliminates coverage for property they're working on or responsible for. They also think the exclusion applies to all property on their premises, when it only applies to property they have specific responsibility for.
In Practice
A dry cleaner accidentally damages a customer's $2,000 wedding dress with chemicals. Their general liability insurance won't pay because the dress was in their care, custody, and control. However, if they had purchased bailee coverage for $50,000 at an annual cost of $800, this would cover the dress damage. Without proper coverage, the dry cleaner must pay the $2,000 claim out of pocket, potentially facing a lawsuit.
Etymology
Uses three legal terms: 'care' from Old English 'caru' meaning concern, 'custody' from Latin 'custodia' meaning guardianship, and 'control' from Medieval Latin 'contrarotulus' meaning power over something.
Common Misspellings
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Related Terms
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See Also
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