We insure a bowling alley that leases space to an individual that owns and operates a pro-shop. The pro-shop is a separate entity from the bowling alley. Our insured building suffered a total fire loss with the cause deemed as undetermined. There was no negligence on the part of our insured. The Pro-Shop owner did not carry his own insurance and is looking for coverage under Personal Property of Others in our care custody or control. Our insured had a key to the leased space, but only to access mechanicals that directly serviced the insured building. Our insured had nothing to do with any business activity related to the pro-shop. Although our insured had a key to the pro-shop, does that necessarily mean the pro-shop merchandise and equipment are under our care custody or control and would Property of Others coverage even apply to this situation?

Michigan Subscriber

A determination of whether property is in the care, custody, or control of the insured will always be very fact-specific, and may vary depending on jurisdiction. Generally speaking however, the care, custody or control exclusion applies only in those situations where the insured has actual care, custody, or control of the property. Typically, some sort of bailee-bailor relationship will need to exist for the exclusion to apply.