When most business owners think about risk, they think about what they own: Their building, equipment, inventory, and tools. Insurance discussions often revolve around protecting those tangible assets from fire, theft, water damage and other common perils. One of the most common and costly gaps we see has nothing to do with property you own. It involves property that belongs to someone else. That’s where Care, Custody & Control (CCC) becomes a critical part of a thoughtful commercial insurance strategy.
TL;DR:
If your business handles, stores, repairs, installs, or transports property owned by others, you may have a Care, Custody & Control (CCC) exposure. Many standard Commercial General Liability (CGL) policies exclude damage to property in your care. That means if a client’s equipment, materials, or goods are damaged while under your supervision, your policy may not automatically respond. CCC is not just a technical insurance detail, it is a financial and contractual risk that should be reviewed proactively.
What Is Care, Custody & Control?
Care, Custody & Control refers to situations where your business is temporarily responsible for property owned by a third party. This responsibility may arise because you’re repairing it, storing it, modifying it, installing it, transporting it, or simply holding it for a client. If that property is damaged while under your supervision, the owner will reasonably expect compensation.
The complication is that many Commercial General Liability policies contain exclusions for damage to property in your care, custody, or control. Business owners often assume their liability coverage will respond, only to discover after a loss that the wording does not extend as broadly as they believed. This gap typically becomes visible only after a claim, when it is too late to adjust coverage.
How Care, Custody & Control Shows Up in Real Life
In Alberta’s business environment, CCC exposure appears across multiple industries. Here are a few examples:
Mechanical Contractor
May remove and replace components in a commercial HVAC system. During installation, an adjacent unit is damaged. If that equipment was under the contractor’s supervision at the time, the liability policy may exclude coverage without specific CCC wording.
Auto Repair Shop
A fire damages multiple units stored inside the shop overnight. The shop’s property policy generally covers its own tools and equipment, not customer vehicles, unless garage coverage has been arranged.
Manufacturer
May receive client-supplied materials for fabrication or modification. A water loss damages the materials before production is complete. The business could be responsible for replacing property it does not own.
Professional Firms
A technology company temporarily holding specialized hardware for configuration, or a medical practice safeguarding client-owned equipment, may assume their liability policy responds when in fact it may not.
These scenarios are not rare. They are common operational realities.
Why This Is a Strategic Issue, Not Just a Policy Detail
Care, Custody & Control is often treated as technical fine print. It’s a broader financial and contractual issue.
Many service agreements include clauses assigning responsibility for client property. Some contracts require specific insurance limits for third-party property while it is under your control. As businesses expand services, increase storage capacity, or take on larger projects, the value of property in their custody often grows, sometimes significantly. The exposure increases quietly.
If a client’s $200,000 piece of equipment is damaged while in your facility, would your current coverage respond? If not, could your business comfortably absorb the loss without affecting operations, cash flow, or reputation?
These are strategic questions that deserve attention before a claim arises.
Why It Matters More in Today’s Environment
Client expectations are higher. Contracts are more detailed. Disputes escalate faster.
In Alberta’s construction, manufacturing, energy, agricultural, and service sectors, businesses routinely handle high-value equipment and materials belonging to others. As projects grow in scale and complexity, the financial stakes increase.
If property is damaged while under your supervision, clients are unlikely to absorb the loss. Even if responsibility is disputed, legal costs and strained business relationships can be significant.
Like Directors & Officers or Errors & Omissions exposures, Care, Custody & Control losses typically involve financial responsibility rather than bodily injury. That means relying solely on a standard liability policy can create blind spots that only become visible after an incident.
Aligning Coverage With Responsibility
Addressing Care, Custody & Control exposure is not one-size-fits-all. The appropriate solution depends on the value of third-party property handled, how long it is retained, whether it is being worked on or simply stored, and what contractual obligations exist.
In some cases, coverage may involve adding specific CCC endorsements. In others, bailee’s coverage, garage policies, installation floaters, or inland marine solutions may be more appropriate. The key is ensuring that your insurance structure reflects how your business operates today, not how it operated several years ago. A proactive review can clarify whether your current wording aligns with your operational reality.
A Smarter Insurance Conversation
Care, Custody & Control may not be the most visible coverage in your commercial policy. But it is often the coverage that determines whether a claim becomes manageable or financially disruptive.
If your business regularly handles, stores, installs, repairs, or transports property that belongs to others, this exposure deserves thoughtful review. Insurance should reflect your responsibility, not just your assets. Regular check-ins with your trusted insurance advisor can give you peace of mind, knowing that your policy is evolving with any increases in Care, Custody, & Control exposure.
Solid Protection. Sound Advice.
