Which type of coverage requires the bailee to be legally liable for the damage to the bailor's property?

The coverage that requires the bailee to be legally liable for damage to the bailor's property is the legal liability basis. This type of coverage specifically hinges on the legal responsibility that the bailee assumes when they take possession of the property belonging to someone else (the bailor). In this context, the bailee must exercise a certain standard of care to protect the bailor's property, and if they fail to do so, they become liable for any damages resulting from their negligence or failure to take adequate care.

Under a legal liability basis, the focus is on the contractual and statutory obligations that define how responsibly the bailee must manage and protect the property in their care. This concept is essential in various contexts, such as repair shops, storage facilities, or any situation where personal property is temporarily entrusted to another party.

In contrast, other coverage types like direct damage basis center on specific physical damage without underscoring the bailee's liability. The mutual benefit basis refers to situations where both the bailor and bailee receive benefits from the bailment, which doesn’t inherently imply liability. The gratuitous basis often applies when the bailee receives no compensation for holding the property, which can further limit the liability they incur. Each of these other options