Job work at 3 rd party warehouse and insurance

We will be sending an high value capex item to one third party for some job work and it will stay their warehouse for about a month.

Is it our responsibility to take insurance coverage, if some damages takes place during job work. Or we can hold them responsible if any loss arises

Thanks

Replies (3)
Quick Summary
When sending valuable capital expenditure items to a third-party warehouse for job work lasting about a month, a key question arises regarding insurance. The responsibility for covering damages typically depends on the contractual agreement. If the arrangement is more akin to a short-term lease where risks aren't transferred, it's advisable to secure your own insurance unless the agreement explicitly states otherwise.

That depends upon the agreement. Is it a lease?

One is on lease and another on job work basis.

Please guide.

Usually in AS short term leases are like operating leases where risks and rewards are not transferred. If you have an agreement about damages, it is fine, or else better get insured

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