What is Care, Custody or Control?

Care, Custody or Control is a legal concept referring to property in your possession but not owned by you, which is typically excluded from standard general liability coverage.

What you need to know

If you operate a coat check, store customer belongings, or temporarily hold customer property (like a laptop left at a table), damage to those items usually isn’t covered by your standard policy.

The exclusion explained:

Standard general liability policies exclude damage to:

• Property you’re storing for customers
• Property you’re transporting for customers
• Property in your care even temporarily
• Property under your custody by agreement or service
• Property under your control while providing a service

Common care, custody or control situations in restaurants:

Coat check services:

• Customer checks coat, it’s stolen or damaged
• You’re legally responsible but insurance won’t cover it
• Typical loss: $200-$2,000 per coat

Valet parking:

• Customer’s car damaged or stolen while under valet control
• Standard liability excludes autos in your care
• Typical loss: $5,000-$50,000+ per vehicle

Customer belongings at tables:

• Laptop, purse, or phone left at table and stolen
• Customer claims you should have secured their property
• Typical loss: $500-$3,000 per item

Special event services:

• Catering where you transport customer-owned equipment
• Customer’s items damaged during your service
• Can include expensive audio/visual equipment, decorations

Storage of customer items:

• Wine lockers for regular customers
• Storage of party supplies before an event
• Holding customer deliveries

Why it matters for restaurant owners

Customers will hold you responsible if their coat is stolen from your coat check or their laptop disappears from their table. Without a special endorsement, you’ll pay out-of-pocket for these losses.

Financial exposure:

A single theft at coat check during busy season could involve:

• 5-10 coats stolen at once
• Average value $300-$800 per coat
• Total loss: $1,500-$8,000
• All paid by you personally

Valet damage to luxury vehicle:

• Scratched $80,000 car
• Repair cost: $5,000-$15,000
• Paid by you, not insurance

Coverage solutions:

Bailee coverage:

• Specifically covers customer property in your care
• Typical limits: $25,000-$100,000
• Covers coat check, valet, stored items
• Annual cost: $300-$1,500

Inland marine coverage:

• Broader coverage for property in transit or storage
• Can cover off-premises catering equipment scenarios
• Flexible limits and terms

If you offer coat check, valet parking, or similar services, specifically ask for bailee coverage or inland marine coverage to protect customer property. The cost is minimal compared to the goodwill and liability protection it provides.

Essential practices:

• Never offer coat check without bailee coverage – one theft could cost thousands
• Use professional valet companies with their own insurance rather than self-operating
• Post disclaimers stating you’re not responsible (limited legal protection, but helpful)
• Maintain surveillance in coat check and valet areas
• Train staff never to accept custody of customer valuables
• Verify coverage before offering any storage or custody services
• Document all transactions – numbered tickets, logs of items accepted