Bailee's Customer Insurance

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Bailee's Customer Insurance

An insurance policy providing coverage in cases in which a bailee does not return property to a bailor in appropriate condition. In a bailment, the bailor temporarily transfers possession of a property to the bailee, who has a fiduciary responsibility to return it in at least the same condition. If the bailee fails to do this through accident or negligence, the bailee's customer insurance pays for the damages.