What type of coverage is typically used to protect named insured property while in possession of others?

Bailment Coverage is specifically designed to protect property owned by the named insured while that property is in the possession of another party, such as a repair service, storage facility, or in transit. This type of coverage recognizes that the insured retains ownership of the property but entrusts it to a third party for a certain period of time or for a specific purpose.

This protection is vital in situations where the property could be damaged or lost while not in the insured’s direct control, thus addressing the unique risks associated with bailment relationships. For instance, if a business sends equipment to a vendor for repairs and that equipment is damaged while in the vendor's care, Bailment Coverage would typically provide the necessary protection for the insured’s financial interests.

The other options listed do not specifically address the same risks associated with property being in the possession of third parties. Commercial Property Coverage generally protects the insured's property from direct risks like fire or theft on a premises basis, while General Liability Coverage is focused on bodily injury or property damage claims made by third parties arising from business operations. Property Damage Coverage is often part of liability policies and focuses more broadly on damage to third-party property, not specifically covering the insured's property in the hands of others.