In the context of Commercial Crime Insurance, who is considered a custodian?

In the context of Commercial Crime Insurance, a custodian is defined as a person who is responsible for maintaining custody of property. This term specifically refers to individuals who have direct control over the property, ensuring its safety and security. The custodian's role is crucial in preventing theft or loss, as they are the ones overseeing the physical handling and safeguarding of the property in question.

Understanding the definition of a custodian is essential in distinguishing their responsibilities from those of others involved in the insurance process or property management. For example, while an agent facilitates the insurance arrangements and external security personnel may be tasked with overseeing security measures, they do not have the same direct custodial responsibility for physical property. The custodian is typically an employee or an individual appointed by the organization who has the day-to-day responsibility for the property's upkeep and security. This distinction plays a significant role in defining coverage and claims under Commercial Crime Insurance policies.