I run a dry-cleaning business. What happens if fire destroys many of my customers’ clothes that were stored in the building?
The standard businessowners policy contains coverage for loss due to fire, including coverage for property of others the insured business was repairing, storing, or otherwise servicing in order to earn money. The coverage only applies, however, if the business is legally liable. Thus, if lightning causes the fire, the business is not responsible because lightning is out of the control of the business owner. There are other policies, called Bailee’s policies, that provide even broader coverage for your customers’ possessions. A Bailee’s policy is often useful to help maintain good customer relations.
