Running a business means taking responsibility for your actions, including when you handle your customers' property. What happens if you accidentally break or damage something that belongs to a client? Without the right coverage, you could face unexpected costs that affect your bottom line.
Many business owners don't realize standard liability insurance often excludes damage to property in their care.
At the Horan insurance agency in Central New York, we work with business owners who handle customer property. We can discuss various coverage options that address this common risk.
This article explores voluntary property damage coverage, who needs it, and why it differs from standard general liability protection.
Understanding Voluntary Property Damage: More Than Just General Liability
When you handle property that belongs to someone else, you take on risk that requires specific coverage. Voluntary property damage insurance covers liability that arises when you damage customer property while it's in your care, custody, or control.
This distinction matters because once you touch or take possession of customer property, standard general liability coverage no longer applies. Instead, voluntary property damage coverage becomes the applicable protection.
For example, if you're a landscaper mowing a client's lawn and need to move an ornamental statue, which accidentally breaks during the process, general liability won't apply. Since you voluntarily took control of the statue, the damage falls under voluntary property damage coverage instead.
Without this specific coverage, you might be personally responsible for repairing or replacing customers' damaged property—costs that could quickly add up, especially for businesses handling valuable items.
Central New York Businesses That Need Voluntary Property Damage Coverage
Many local businesses in Central New York regularly handle customer property as part of their services. If your business falls into any of these categories, you should consider voluntary property damage coverage:
- Computer repair shops handling customers' devices
- Janitors or cleaning services moving items to clean
- Maintenance workers handling equipment during repairs
- Home service providers working with household items
- Appliance repair technicians working on customer equipment
- Retail businesses that repair or alter customer property
Consider a Syracuse-based computer repair technician working on a customer's laptop. If the device slips and falls while being serviced, voluntary property damage coverage would respond to the claim—whereas general liability would not, since the laptop was in the technician's care.
Important Limitations You Should Know About
While voluntary property damage coverage addresses a crucial gap in protection, it comes with several important considerations:
- Not all business policies include this coverage automatically
- When included, many policies provide limited coverage amounts
- Coverage applies only to accidental damage, not intentional acts
- Specialized businesses may need higher limits than standard policies offer
For instance, a cleaning service in Liverpool might handle numerous valuable items in homes. If their policy includes only $5,000 in voluntary property damage coverage, but they accidentally damage an antique valued at $10,000, they'd face a significant insurance gap.
That's why it's essential to evaluate your business risks and confirm your policy includes adequate voluntary property damage limits based on the value of customer property you typically handle.
How to Determine If Your Policy Includes This Critical Coverage
Many business owners assume their general liability policy covers all property damage scenarios, which can lead to costly surprises. To determine if you have voluntary property damage coverage:
- Review your current business policy documents
- Look specifically for "care, custody, and control" exclusions
- Check for voluntary property damage endorsements
- Confirm your coverage limits match your business exposure
If you don't see this coverage listed, or if the limits seem too low for your business activities, it's time to speak with a licensed insurance agent who can help address this gap.
Coverage Options for Customer Property Claims
Accidents happen even to the most careful businesses. Without voluntary property damage coverage, one mistake could lead to significant out-of-pocket expenses. This specialized coverage isn't just about addressing potential claims—it's about conducting business with confidence in your financial preparations.
You want to focus on serving your customers, not worrying about what might happen if something goes wrong. With voluntary property damage coverage, you can have coverage options for situations involving accidental damage to your customers' belongings.
Click the Get a Quote button below to learn if your current business policy includes voluntary property damage coverage, or to explore options that can help protect your business when handling customer property.
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