In liability forms, care, custody, and control exclusions deny coverage for loss of property merely entrusted to the insured for safekeeping.
Coverage intent
The exclusion avoids making liability policies act like warehousing coverage for clients’ goods and similar entrusted assets.
Underwriting and policy mechanics
Policies define excluded property categories by possession status:
- Temporary possession only.
- Goods not under title transfer.
- Losses arising from storage, processing, or transport control.
Claims logic
If loss occurs to entrusted property, carriers may deny under this exclusion unless other endorsements create a separate bailee or warehousing coverage layer.
Practical question
A logistics company temporarily stores client equipment and that equipment is damaged by flood. What matters first for coverage?
Whether the contract language places the goods under care, custody, and control terms and whether any separate bailee coverage applies.