Legal liability coverage form insures property in whose care, custody, or control?

Legal liability coverage form insures property in whose care, custody, or control?

• A. The insured's own property
• B. Other people's property
• C. The insured's employees' property
• D. Property outside the insured premises

Answer: (B)

Legal liability coverage is written to protect property belonging to others that is in the insured’s care, custody, or control when the insured is legally liable for damage to that property. This stands in contrast to coverage for the insured’s own property, which is handled by the standard property policy. So, the form responds to damage to someone else’s items while they’re in the insured’s possession, such as a customer’s goods at a repair shop or cleaners. That makes “other people's property” the correct focus of this coverage.

Legal liability coverage is written to protect property belonging to others that is in the insured’s care, custody, or control when the insured is legally liable for damage to that property. This stands in contrast to coverage for the insured’s own property, which is handled by the standard property policy. So, the form responds to damage to someone else’s items while they’re in the insured’s possession, such as a customer’s goods at a repair shop or cleaners. That makes “other people's property” the correct focus of this coverage.