Who is referred to as a Bailor in an insurance context?

In the context of insurance, a Bailor is defined as the individual who retains ownership of the property while it is in the care of another party, known as the bailee. This relationship is established when the Bailor temporarily transfers possession of the property to the bailee for a specific purpose, such as repair, storage, or transportation, without transferring ownership rights.

The Bailor retains legal ownership of the property and is entitled to have it returned in its original or agreed condition at the end of the bailment period. This distinguishes the Bailor from the bailee, who merely has temporary possession and is responsible for the care of the property during the bailment.

Understanding this relationship is crucial in scenarios involving insurance claims and liability, as responsibilities for damage or loss may depend on whether the Bailor has minimal or substantial control over the property during the bailment. In situations where the property is damaged while under the care of the bailee, the Bailor might pursue compensation under their insurance policy for any losses incurred.