Bailees Coverage for Off-Premises Goods

Q

Our insured owns a commercial laundry business, but has no on-premises dry cleaning service. To accommodate his customers, the insured sends the customers' clothes that need to be dry cleaned to a local dry cleaning service. That dry cleaning plant was destroyed in a fire, which also destroyed clothes belonging to some customers of our insured. The insurer of the dry cleaning plant will not pay any bailee claims because arson is suspected.

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