Care, custody, and control in business insurance
Care, custody, and control (CCC) refers to a common exclusion in many general liability (GL) and commercial auto policies. If you're responsible for property that isn't yours and it gets damaged, your standard coverage likely won't pay for it. CCC insurance can protect your business from that risk.
Many small businesses take care of client property, like storing tools, equipment, or vehicles. Customers trust you to keep their belongings safe. Understanding what your insurance does and doesn't cover helps you keep that promise.
What is care, custody, and control in business insurance?
CCC insurance coverage protects your business when you're in charge of someone else's property. If it's lost, damaged, or stolen while in your care, you could be responsible for repairing or replacing it. Your standard liability coverage might not be able to help because CCC is usually an exclusion from those policies.
Think of your general or vehicle liability insurance as a safety net. It covers most accidents, but it has a hole that property in your care, custody, or control falls right through. You may need additional coverage to help protect customer property in these situations. It starts as soon as the item enters your care and ends after you return it to the owner.
Progressive Commercial can help you understand when you need CCC protection and when you don't. Call and speak to one of our agents, or start an online quote to get the CCC coverage that's right for you.
When does the CCC exclusion apply?
The care, custody, and control exclusion applies in the following situations:
- Care: Temporarily overseeing someone's property (e.g., an auto mechanic holding a car during repairs).
- Custody: Being responsible for safeguarding property (e.g., a dry cleaning storing a customer's suit).
- Control: Having authority to manage or use property (e.g., an IT consultant with access to client systems).
Does the CCC exclusion apply to all third-party property?
No. The care, custody, and control exclusion usually only relates to personal property, not real property like building structures, components, or fixtures. Your liability insurance can sometimes cover those assets, including damage to premises you rent, under a commercial general liability policy.
Check your documents for CCC exclusions
Leases, policy documents, and business contracts often include care, custody, and control exclusions. Reviewing these terms can help you understand when you're responsible for someone else's property — and when your standard coverage might not apply. If you're not sure what to look for, a Progressive Commercial expert can help.
What are the benefits of having CCC coverage?
Care, custody, and control coverage protects your business financially if customer property is damaged while in your care. It can cover the cost to repair or replace damaged items, reduce the risk of unexpected out-of-pocket costs, and support customer trust. It may also help you meet contract or lease requirements. Without it, you could face costly claims if something goes wrong while you're responsible for someone else's belongings.
Accidents happen. Here's where CCC coverage can make a difference:
- An auto repair business is fixing a customer's car when another vehicle backs into it.
- A pet groomer loses an expensive collar while caring for a dog.
- A framing shop tears a client's print during the framing process.
- A temporary storage facility experiences water damage from a leaky roof, ruining a customer's furniture and keepsakes.
CCC insurance applies in situations like these by managing covered losses and protecting your reputation, customer relationships, and bottom line. Start a quick online quote or talk with an insurance expert to learn more.
What businesses are most affected by the CCC exclusion?
If you handle, store, or transport property that doesn't belong to you, you need extra protection that accounts for any care, custody, and control exclusion. Small businesses that can benefit from having coverage include:
- Auto detailing services
- Cleaning services
- Contractors
- Jewelers
- Pet groomers
- Auto mechanics
- Janitorial services
- Handymen
- Dry cleaners
- Dog walkers
What's the difference between CCC and general liability insurance?
General liability covers damage to someone else's property as long as it's not in your care or under your supervision. For example, if a painter spilled paint on a customer's couch while working in their home, general liability could cover the cost to fix or replace it.
But if that same painter stored the couch at their shop during the project and it got damaged, GL wouldn't apply. That's because general liability is designed to help with claims from other people. When you take control of someone else's property, your business becomes responsible for it. That's a different type of risk, and you'll need additional CCC coverage to help with those claims.
Let's take a look at how general liability and CCC protections compare:
Coverage type | What it covers | What it doesn't cover |
General Liability | Damage to other people's property when it's not in your possession. | Customer property in your care, custody, or control. |
CCC Coverage | Customer property you store, handle, or manage. | Fixed property, such as buildings or permanent structures. |
How to get CCC coverage
Most insurance policies have a CCC exclusion for items under your care, custody, or control. At Progressive Commercial, we offer options for protecting your business when you're responsible for someone else's property.
General liability endorsement
A CCC endorsement on a general liability policy can cover property you take responsibility for, like items you're storing for a customer. It closes the gap in your standard general liability policy by helping if that property is damaged while in your care. Adding this coverage to GL gives you broader protection for customer property, no matter where accidents happen.
Garagekeepers legal liability insurance
Garagekeepers legal liability is an optional coverage on a commercial auto insurance policy. It protects customer vehicles when parked, serviced, or stored at your business. It also covers you if the vehicle gets damaged by fire, theft, vandalism, or collision.
In Texas and Virginia, this coverage is referred to as storage location insurance. In these two states only, on-hook towing insurance is called garagekeepers legal liability insurance.
Inland marine insurance
Inland marine insurance is additional coverage for equipment, tools, and merchandise that you transport or store away from your business. Let's say you regularly move or store goods off site. In that case, you should consider adding inland marine insurance as an endorsement to your general liability insurance or business owners policy (BOP).
Bailee's customer insurance is a specialized form of inland marine coverage that specifically closes the CCC gap.
Getting care, custody, and control coverage from Progressive Commercial
Protecting your company starts with having the right coverage. With over 50 years of experience, customers trust us to build business insurance policies that fit their unique risks. From general liability insurance to care, custody, and control protection, we can help you get what you need. Find the expert support you deserve by starting a quote online or speaking with an in-house agent.
Frequently asked questions about CCC insurance coverage
Does my general liability policy automatically cover damage to a client's property?
No. General liability will help in some situations, but you'll need specialized CCC coverage if you're storing, holding, repairing, or transporting property under your care, custody, or control.
How much does CCC coverage cost?
What you'll pay for CCC coverage depends on a few factors. Insurers will consider things like your business type and location, the value of the property you handle, your policy limits, and claims history.
Does the CCC exclusion apply to leased equipment?
Yes. If you damage leased property under your control, the CCC exclusion applies. However, tools and equipment insurance from Progressive Commercial can protect the equipment you rent for a job. Start a quote online or reach out to one of our insurance specialists with any questions.
Are any businesses or industries exempt from the CCC exclusion?
No. If your business takes care, custody, or control of someone else's property, you could be responsible for damages without the right protection.
