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🚫 '''Care, custody, and control exclusion''' is a standard provision found in [[Definition:Commercial general liability insurance (CGL) | commercial general liability]] and many other [[Definition:Liability insurance | liability insurance]] policies that removes coverage for damage to property that is in the [[Definition:Insured | insured's]] possession, under their supervision, or entrusted to them for safekeeping, use, or work. In the insurance industry, this exclusion is a foundational element of [[Definition:Policy wording | policy design]], drawing a bright line between third-party [[Definition:Property damage | property damage]] liability — which CGL policies are built to cover — and the insured's responsibility for property they have accepted control over, which is more appropriately addressed through [[Definition:Inland marine insurance | inland marine]], [[Definition:Bailee insurance | bailee]], or [[Definition:Installation floater | installation floater]] coverage.

⚙️ The exclusion operates by identifying three overlapping relationships between the insured and the damaged property: care (a duty to look after the property), custody (physical possession), and control (the authority to direct how the property is used or managed). If damage occurs to property falling within any of these categories, the CGL policy will not respond — even if the insured would otherwise be liable to the property owner. Consider a warehousing company that accidentally damages goods stored on behalf of a client: because those goods are in the warehouse operator's custody and control, the standard CGL exclusion applies, and the operator must look to a [[Definition:Warehouseman's legal liability insurance | warehouseman's legal liability]] or bailee policy instead. [[Definition:Underwriter | Underwriters]] occasionally modify the exclusion through [[Definition:Endorsement | endorsements]] — such as a "care, custody, or control" carve-back for specific types of property or limited sub-limits — particularly when the insured's business inherently involves handling others' property and a standalone policy would be impractical.

📋 Misunderstanding this exclusion is one of the most common sources of [[Definition:Coverage gap | coverage gaps]] and [[Definition:Claim | claims]] disputes in commercial insurance worldwide. Contractors, logistics operators, repair shops, and service providers frequently assume their general liability policy will protect them if they damage a client's property in their care — only to discover the exclusion at the worst possible moment. [[Definition:Insurance broker | Brokers]] and [[Definition:Risk manager | risk managers]] play a critical role in identifying exposures that fall within the exclusion's scope and arranging appropriate supplementary coverage. From a global perspective, the concept exists across markets, though the precise wording and breadth vary: U.S. ISO forms use the traditional tripartite language, while policies in the UK and European markets may address the same risk under "property in the insured's custody" or similar formulations. Regardless of jurisdiction, the exclusion reinforces a core principle of liability insurance — it is designed to protect against claims from unrelated third parties, not to serve as a substitute for first-party or bailment coverage.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Commercial general liability insurance (CGL)]]
* [[Definition:Bailee insurance]]
* [[Definition:Inland marine insurance]]
* [[Definition:Coverage gap]]
* [[Definition:Endorsement]]
* [[Definition:Policy exclusion]]
{{Div col end}}

Definition:Care, custody, and control exclusion - Revision history

PlumBot: Bot: Creating new article from JSON