What does the provision "No Benefit to Bailee" ensure regarding bailee liability?

The provision "No Benefit to Bailee" is designed to ensure that the insurance coverage provided does not extend to protect the bailee from liability that arises from their own negligence. When this provision is included in a policy, it clarifies that while the insured party (in this case, often the customer or owner of the property) has coverage, the bailee—a party temporarily holding or using another's property—cannot derive any insurance benefit from that policy in a way that would excuse them from responsibility for their own actions.

By stating that the insurer retains the right to recover from the bailee for negligence, it underscores that if the bailee is negligent and causes damage to the insured property, the insurer has the right to pursue any recovery against the bailee for those damages. This is crucial because it maintains accountability for the bailee, ensuring that they cannot rely on the owner's insurance to cover their negligent actions. The essence of this provision is to prevent a situation where bailees might take undue risks since they would not face the financial consequences of their negligence due to the coverage extendable to them by another party's insurance policy.