In terms of covered locations, which of the following is true regarding Bailee policies?

Bailee policies are specifically designed to provide coverage for property that is in the care, custody, and control of the insured. This includes scenarios where the insured is responsible for goods belonging to others, such as a dry cleaner holding customers' garments or a repair shop working on clients' equipment.

The correct assertion highlights that coverage can extend to off-premises servicing locations. This means that if the insured is handling or caring for property away from their primary business location—such as when equipment is being serviced at a different site or when property is stored at a warehouse—the coverage still applies. This feature is crucial for businesses whose operations often require them to manage customers' property in varied locations beyond just their own premises.

In contrast, other options do not align with the flexibility inherent in Bailee policies. For instance, limiting coverage strictly to the insured's premises, excluding property in transit, or restricting coverage only to newly acquired locations would not reflect the comprehensive nature intended in most Bailee agreements. This broader coverage is particularly important for businesses that rely on transporting or servicing client property at various sites, as it ensures they remain protected against potential liabilities in those circumstances.