What is a key feature of bailees customer policies in inland marine insurance?

Inland marine insurance is designed to protect items that are in transit or in the custody of a bailee, which is a person or entity that holds the goods of another for a specific purpose. Bailees customer policies specifically provide coverage for items that are being stored, repaired, or processed by the bailee. A key feature of these policies is that they are generally written on a named-peril basis.

This means that the coverage explicitly lists the perils or risks that are covered, as opposed to an all-risk basis that would include coverage for all risks except those specifically excluded. This approach ensures that the policyholder knows exactly what is covered under the policy, allowing for better risk management and understanding of their insurance protection.

The other options do not accurately reflect the nature of bailees customer policies. For instance, they do cover goods in custody, not just during transportation. Coverage does not exclude direct damage; rather, it specifically addresses the risks applicable to the bailee’s responsibilities. Additionally, while some bailees might deal exclusively with electronics, the policies themselves are not limited to this category and can apply to a wider range of goods.