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Care, custody or control exclusions: disputed and misunderstood

Determining whether or not the insured has care, custody or control over the property in question depends on the facts.

By FC&S Editors | Updated on August 02, 2017

Analysis brought to you by the experts at FC&S Online, the unquestioned authority on insurance coverage interpretation and analysis for the P&C industry. To find out more — or to have YOUR coverage question answered — visit the National Underwriter website, or contact the editors via Twitter: @FCSbulletins.

Question: We have a self-storage facility insured under an unendorsed ISO BOP form BP 00 02 01/87 and BP 00 06 01/87. The facility mixed up the storage unit numbers and inadvertently sold off the stored property of the wrong renter. That renter is suing for sold & discarded merchandise of $20,000. Underwriting contends that Liability does not extend due to the Care, Custody & Control exclusion in the Liability form. Further, the Property of Others in the Property form limits coverage to $2,500. Claims says they are handling it as Liability due to negligence as the insured does not have ccc, but only has access to the units for emergency or failure to pay rent. Further they do not feel that the $2,500 Property limit applies to a 3rd party claim. Your opinion would be appreciated.

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