Alabama Insurance Adjuster Practice Exam

Which of these businesses would be LEAST likely to need a bailee's customer floater?

1. A car rental service

2. An ice cream shop

3. A laundry service

4. A storage facility

The correct answer is: An ice cream shop

A bailee's customer floater is an insurance policy that protects a business when it is entrusted with someone else's property. This coverage is especially relevant in scenarios where a business temporarily holds onto customers' goods during the provision of services or while in their custody. The ice cream shop is least likely to need a bailee's customer floater because its primary activity does not involve holding significant personal property from customers. An ice cream shop sells products directly to customers, who take the items away immediately. While the shop may handle ingredients and supplies, these do not represent customers' property in the same way that a rental service, laundry service, or storage facility would manage items that belong to others. In contrast, the other businesses listed engage in activities where they possess customers' items: - A car rental service holds customers' vehicles while providing renting services. - A laundry service has customers' clothes for cleaning and care. - A storage facility is responsible for storing customers' belongings securely. These businesses have a defined need for bailee's customer coverage as they are in a position to potentially face liability for lost or damaged items entrusted to them.