Insurance and risk
bailment
A bailment is a transfer of possession of property without a transfer of ownership. Cornell's Legal Information Institute defines it that way. The person who delivers the item is the bailor, and the person who receives it is the bailee. The bailee must usually return the item.
Why it matters
A bailment can arise when a portable storage company holds or moves a customer's belongings. The company may owe a duty of care, and the details depend on state law and the contract. Insurers also use the word. NAIC's inland marine definition mentions property held by a bailee. A common mistake is to think a signed waiver removes all duties. Courts may limit such clauses. Operators should ask a lawyer and an insurance agent how bailment applies to them. Customers should read the agreement and ask about coverage. This is general information, not legal advice.
Read: Insurance for portable storage companies: What coverage to ask about
Definition source: law.cornell.edu
Related terms
contents coverage
Contents coverage is protection for the items stored inside a container. PODS explains two kinds of protection: contents protection covers the container and your contents against accidents, burglary and vandalism in listed settings, and container-only protection covers just the container. Terms and exclusions vary by company.
inland marine insurance
Inland marine insurance is property coverage for items that move or sit away from a fixed location. NAIC says it covers property in transit, held by a bailee, at a fixed location, or movable goods often at different locations. Progressive describes it as coverage for tools, equipment and products stored away from your business.
cargo insurance
Cargo insurance protects goods that a carrier hauls for others. Progressive Commercial describes motor truck cargo insurance as protecting goods and materials transported by for-hire truckers against events such as fire, collision and theft. It protects both the carrier and the cargo owner.
rental agreement
A rental agreement is the contract that sets the terms for renting a container or similar unit. RentalModo says it is usually two or three pages. It covers the rate, minimum term, damage rules, delivery and pickup, and fees. The fine print is often in clauses that renters skim.
damage waiver
A damage waiver is an optional fee in a rental agreement that limits what the renter owes if the rented unit is damaged. RentalModo's guide gives sample contract language saying a Loss and Damage Waiver, if elected, limits liability for physical damage only. Terms and exclusions differ by company.
general liability insurance
General liability insurance is business coverage for claims of injury or property damage to other people. NAIC defines commercial general liability as flexible and broad commercial liability coverage with two major sub-lines: premises and operations, and products and completed operations. Policies differ in limits and exclusions.
For the industry
Grow your portable storage business with NPSA
Members get event rates, the Community Forum, the directory listing and leads from this website.
Need storage?
Get quotes from NPSA member companies
Tell us what you need and where. A member company that serves your area will contact you.