Care, Custody, or Control (CCC) in Insurance: Overview, Examples

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. She has been an investor, entrepreneur, and advisor for more than 25 years. She is a FINRA Series 7, 63, and 66 license holder.

What Is Care, Custody, or Control (CCC)?

Care, custody, or control is an exclusion found in liability insurance policies that removes compensation for the insured when a property that is placed in their care is damaged. The care, custody, or control (CCC) exclusion generally applies to property that is not owned by the insured, such as rental equipment or goods being transported. CCC implies that if an individual damages property that is in their care but is not their property, their insurance will not cover the damages.

Key Takeaways

• Care, custody, or control (CCC) is a term that prevents an insured individual from claiming compensation on property not owned by them that was damaged while in their care.
• General liability policies typically cover property that is owned by the insured party and not third-party property. This exclusion falls under care, custody, or control (CCC).
• Each insurance claim varies depending on the situation so the care, custody, or control (CCC) exclusion is often up for interpretation when a claim is reviewed.
• Individuals and businesses are able to purchase a variety of different insurance policies that would cover any gaps from a care, custody, or control (CCC) exclusion.

Understanding Care, Custody, or Control (CCC)

Commercial general liability policies often contain several exclusions. Coverage typically applies to property that is owned by the insured party, or otherwise specifically listed in the insurance policy language. Other property, such as rented property, is often left uncovered by care, custody, or control exclusions.

Whether property falls under care, custody, or control exclusions may vary on a case-by-case basis. If a claim is filed, courts will consider the facts of the case to determine if the exclusion applies. The exposure that triggers the CCC exclusion is created by having someone else’s property in your possession. The exclusion applies only to personal property, not real property, such as buildings or permanently attached fixtures. Real property is a separate item in your liability policy.

The Components of Care, Custody, or Control (CCC)

The exclusion applies if any one of the three terms is true.

• Care: The insured is responsible for overseeing the property for a specific time period.
• Custody: The insured is in charge of safely guarding the property.
• Control: The insured has power over the property.

The CCC exclusion is different in every situation. There is not a specific definition or guideline that would determine if compensation is owed or withheld. Different factors in similar situations can have different judgments by insurance companies on whether coverage applies or not.

Example of Care, Custody, or Control (CCC)

A delivery truck driver is charged with picking up an order of apples from an orchard. This process requires the orchard manager to load the apples into a trailer, which they have rented for this purpose. During loading, the rented trailer is damaged by the orchard manager crashing it into the truck. The orchard manager's liability insurance provider may deny coverage because the trailer was damaged while under the care, custody, or control of the orchard manager.

In this instance, however, while renting the trailer, it is most likely that the orchard manager would've taken out some insurance on the trailer provided by the rental business. While care, custody, or control exclusions remove coverage for property, other insurance coverage options offer protection, such as truck cargo or garage insurance.