Care, custody and control

What is care, custody and control (CCC)?

CCC is an exclusion in general liability insurance or commercial auto insurance policies. If you damage an item you’re taking care of, but don’t own, your insurance might not cover the costs.

For example, let’s say you’re a general contractor hired to remodel a client’s kitchen. While working on the project, you accidentally damage an expensive piece of art. If your general liability insurance policy includes the CCC exclusion, your insurance company may not cover the cost of repairing or replacing it because you were in care, custody and control of the item.

How does the CCC exclusion work?

General liability coverage handles financial losses if someone gets injured on your premises. It also covers you if your operations or products cause bodily injury or property damage. Think of it as a safety net for your property against various types of claims.

Without a CCC exclusion, general liability coverage extends to injuries or damages that occur while you have care, custody or control of someone else’s property. However, if your general liability policy has a CCC exclusion, you won’t receive any protection in these cases.

Care, custody and control exclusion scenarios

The CCC exclusion could apply in the following scenarios:

• A mechanic damages a client’s car while it’s in their workshop.
• A dry cleaner stains a client’s dress.
• A jeweler scratches a client’s watch during a repair.
• A dog is injured while being walked by its dog walker.
• A real estate agent damages a wall while showing a house.

CCC exclusions apply when businesses are in charge of someone else’s property. Because of the CCC exclusion, general liability may not cover damages.

What insurance fills the gaps for the care, custody, and control exclusion?

There are several policies that cover property loss caused by the CCC exclusion.

• Garagekeeper liability. This is insurance for businesses like auto repair shops. It covers damages to customers’ vehicles while in your care.
• Bailee coverage: This is insurance for items you’re entrusted with. For example, if you’re a dry cleaner and a customer’s clothes get damaged, this coverage handles it.

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