Final answer:
A bailee is a person or organization that temporarily possesses someone else's property. They have legal responsibility for property or goods that belong to others, and they often purchase inland marine insurance to protect themselves against the risk of loss or damage.
Step-by-step explanation:
A bailee is a person or organization that temporarily possesses someone else's property. In the context of insurance, bailees are individuals or businesses that have legal responsibility for property or goods that belong to others. They are commonly found in industries such as warehousing, transportation, or storage.
For example, a logistics company that stores and delivers goods on behalf of a manufacturer would be considered a bailee. If any of the goods are lost, damaged, or stolen while in the care of the logistics company, the bailee would typically be held responsible and liable for compensating the manufacturer.
Bailees often purchase inland marine insurance to protect themselves against the risk of loss or damage to the goods they have in their care, custody, and control. Inland marine insurance covers property that is in transit or held for transportation, including property held by bailees.