Care, Custody, and Control

Care, custody, and control (CC&C) is an exclusion written into every standard Commercial General Liability (CGL) policy that eliminates coverage for physical damage to third-party property while that property is in the insured's possession or supervision. It prevents the CGL from functioning as a property policy for goods or equipment entrusted to you.

Who this is for: Contractors, repair shops, movers, IT service technicians, caterers, and any business that regularly handles property belonging to clients or customers.

TL;DR — Key Takeaways

• Your CGL policy does not cover damage to client property you are physically responsible for at the time of the loss — that is the CC&C exclusion.
• The exclusion applies to personal property in your possession and to the specific portion of real property you are actively working on.
• Common fixes include Inland Marine / Bailee's Customer coverage, endorsements to buy back limited CC&C, and Garage Keepers Legal Liability for auto-related trades.
• The exclusion exists in the ISO CGL form (CG 00 01) and mirrors it across most admitted carrier forms nationwide.
• Leaving this gap unaddressed is one of the most common — and most expensive — surprises contractors face at claim time.

What Does "Care, Custody, and Control" Actually Mean?

The phrase has three legally distinct but overlapping concepts:

Courts have interpreted CC&C broadly. You do not need all three to trigger the exclusion — possession alone is often sufficient. If a court finds the insured exercised any meaningful dominion over the property at the time of damage, the CGL exclusion typically applies.

Where Is the Exclusion Found in the CGL Policy?

The ISO Commercial General Liability Coverage Form (CG 00 01) lists the CC&C exclusion under Coverage A — Bodily Injury and Property Damage Liability, in the property damage exclusions block. The relevant language excludes property damage to:

• Personal property in the care, custody, or control of the insured (exclusion j.4)
• That particular part of real property on which the insured is performing operations, if the damage arises out of those operations (exclusion j.5)
• That particular part of any property that must be restored, repaired, or replaced because the insured's work was incorrectly performed on it (exclusion j.6)

Most non-ISO carrier forms contain substantially similar exclusionary language. Always read the actual policy form — endorsements and manuscript language can narrow or expand these exclusions.

Which Trades Are Most Exposed?

The CC&C exclusion creates the greatest exposure in industries where client property regularly passes through the insured's hands:

How to Close the Care, Custody, and Control Gap — 5 Steps

1. Identify your exposure. List every category of third-party property your business regularly handles: client equipment, vehicles, materials, garments, data storage media, artwork.

2. Read your CGL exclusion block. Locate exclusions j.4 through j.6 (or their equivalent) on your current policy and confirm the breadth of language. Some carriers use broader or narrower wording.

3. Request a CC&C endorsement quote. Many commercial insurers offer limited buy-back endorsements (typically carrier-specific manuscript forms, as there is no standard ISO CGL endorsement that buys back the CC&C exclusion) for an additional premium. These typically impose a sublimit (often $25,000–$100,000) and may carry a separate deductible.

4. Obtain separate Inland Marine or specialty coverage. For trades with high-value client property exposure (movers, IT, contractors installing expensive equipment), a standalone Bailee's Customer policy, Installation Floater, or Motor Truck Cargo policy often provides broader protection and higher limits than a CGL endorsement alone.

5. Review contractual requirements. Clients frequently require "property of others" coverage in their vendor agreements or project contracts. Confirm your coverage certificate reflects the correct coverage before executing contracts.

Real-World Example: HVAC Contractor, Nashville, Tennessee

The following is an illustrative scenario and does not represent a guarantee of coverage or outcome.

A commercial HVAC subcontractor in Nashville is replacing a rooftop chiller unit at an office building. The building owner's existing chiller (valued at $85,000) is still on the roof when the contractor's crew accidentally damages it during rigging — a 50-ton unit shifts and the compressor housing cracks.

Without CC&C coverage: The subcontractor's CGL carrier denies the claim, citing exclusion j.4 (personal property in the insured's care, custody, or control). The building owner files suit. The contractor faces an $85,000 repair bill plus legal defense costs out of pocket.

With coverage in place: The contractor had purchased a Contractor's Installation Floater with a $250,000 limit covering property of others in their care for an annual premium of approximately $1,800. The insurer pays the repair cost less the $2,500 deductible. Total out-of-pocket: $2,500 instead of $85,000+.

Tennessee contractors note: Standard CGL policies issued in Tennessee follow ISO form language and include the CC&C exclusion. No Tennessee-specific statute overrides this exclusion [verify state for any updates].

FAQ — Care, Custody, and Control

What is care, custody, and control in insurance? Care, custody, and control (CC&C) is a standard exclusion in Commercial General Liability policies that removes coverage for damage to third-party property while it is in the insured's possession or supervision. It applies to personal property the insured is holding and to the portion of real property the insured is actively working on.

Does my general liability policy cover damage to a client's property? Generally, no — not if the property was in your care, custody, or control when the damage occurred. The CC&C exclusion specifically blocks this coverage. You need a separate endorsement or a standalone Inland Marine or Bailee's policy to fill this gap.

What coverage replaces or fills the care, custody, and control exclusion? Common solutions include: (1) a CC&C buy-back endorsement on the CGL, (2) an Inland Marine / Bailee's Customer policy, (3) a Contractor's Installation Floater, (4) Garage Keepers Legal Liability (auto trades), or (5) Motor Truck Cargo coverage (transportation businesses). The right solution depends on your trade and the type of property you handle.

How much does it cost to add care, custody, and control coverage? A CGL endorsement with a $25,000–$50,000 sublimit typically adds $150–$600 per year for small service contractors. A standalone Bailee's Customer policy with $100,000–$500,000 in limits ranges from roughly $400–$2,500 annually depending on the volume and value of property handled. Movers and storage operators with high cargo values may pay more.

Does the CC&C exclusion apply to real property too? Yes. In addition to personal property, the exclusion applies to: (1) the specific portion of a building or structure the insured is performing operations on (j.5), and (2) any property the insured must repair or replace because their work was performed incorrectly (j.6). These are separate sub-exclusions within the same block.

Will a certificate of insurance show care, custody, and control coverage? A standard ACORD 25 certificate does not separately list CC&C coverage. If your client requires evidence of this coverage, ask your broker to attach an endorsement schedule or a separate Inland Marine declarations page to the certificate package.

Is care, custody, and control the same as completed operations coverage? No. Completed operations coverage (Coverage A of the CGL) applies to bodily injury or property damage that occurs after your work is finished. CC&C applies while you still have physical possession of the property. Both have separate exclusions, and both may need to be addressed depending on the work performed.

What is the difference between care, custody, and control and an employee dishonesty bond? CC&C coverage addresses accidental physical damage to client property you possess. An Employee Dishonesty (Crime) bond covers theft of client property by your employees. They address different perils and different policies. A business with high-value client goods often needs both.

Why Morrow for Care, Custody, and Control Coverage

1. Independent placement across multiple carriers. Morrow is not captive to one insurer. We shop CC&C endorsements and Inland Marine options across the admitted and E&S markets to find coverage that actually fits your exposure — not a generic one-size form.

2. Trade-specific expertise. We regularly place coverage for contractors, HVAC/plumbing/electrical trades, movers, and service businesses. We know which carriers include favorable CC&C language at standard pricing and which bury problematic sublimits in the fine print.

3. Certificate and COI turnaround. When a project contract requires evidence of property-of-others coverage, we issue certificates quickly — typically same business day — so you don't lose work waiting on paperwork.

4. Contract review support. We read the vendor or subcontractor agreement alongside your policy to flag gaps before you sign. If a client's contract requires a $100,000 CC&C limit and your current endorsement only provides $25,000, we catch it before a claim does.

5. Claims advocacy. If a client property claim is filed and a carrier attempts to invoke the CC&C exclusion improperly, Morrow advocates on your behalf — reviewing the exclusion language, the facts of the loss, and relevant state case law to push back when warranted.

Get a Quote or Review Your Current Coverage

If you handle client property in any form, the CC&C gap in your CGL is worth a 10-minute review. Request a free coverage review from Morrow or call us directly to discuss your exposure.

Trust strip: Morrow (Afthonea Inc, DBA Morrow) is a licensed independent commercial P&C insurance agency [Morrow to confirm: licensed states and NPN]. We place coverage with admitted and non-admitted carriers across the US. [Morrow to confirm: carrier panel and review platform link.]

Related Pages

• Commercial General Liability Insurance — parent pillar covering the full CGL policy structure
• Inland Marine Insurance Explained — the primary vehicle for covering property of others in transit or storage
• Contractor's Installation Floater — covers materials and equipment during installation projects
• Garage Keepers Legal Liability — CC&C equivalent for automotive trades
• Certificate of Insurance (COI) Guide — what a COI shows, what it doesn't, and how to request one correctly

Author: Sarah K. Brennan, CPCU, CIC — Commercial Lines Coverage Specialist with 14 years of experience placing P&C programs for contractors and service industries.

Published: June 2026 | Last updated: June 2026

Sources: - ISO Commercial General Liability Coverage Form CG 00 01 (Insurance Services Office) - National Association of Insurance Commissioners (NAIC) — Commercial Lines Policy Form Guidelines - Insurance Information Institute (III) — Commercial General Liability Overview - Tennessee Department of Commerce and Insurance (TDCI) — Commercial Lines Resources - American Institute for CPCU / Insurance Institute of America — CGL Coverage Analysis