The bailee policy pays to whom?

The bailee policy is specifically designed to cover the interests of a customer who has entrusted their property to a bailee for storage, repair, or other services. In this context, the bailee is the entity or person who receives the property for care but does not retain ownership of it. Therefore, when a loss occurs to the property under the care of the bailee, the insurance policy compensates the customer, who owns the property.

This kind of coverage is essential as it ensures that customers are financially protected from potential losses that may happen while their property is in someone else’s custody. Hence, the policy assists the customer in recovering losses without the need to pursue the bailee directly for restitution, streamlining the claims process in situations where property is damaged or lost.