Which type of business is most likely to need bailee coverage?

Bailee coverage is designed to protect businesses that temporarily hold or take custody of someone else's property. In this context, a TV repair shop is a business that directly engages in the repair of customer televisions, meaning they take possession of the TVs while providing their services. This creates a situation where the shop has a duty to take care of the customers’ property, making them a bailee.

The necessity for bailee coverage arises because the repair shop is responsible for the safety and protection of the televisions during the repair process. If a customer's TV is damaged or lost while in the shop's possession, the shop could be liable for those losses. Therefore, having bailee coverage helps mitigate this risk by providing insurance for the value of the property being repaired.

In contrast, while an auto repair shop and a retail store may also hold customer property, the TV repair shop is specifically focused on the repair aspect and the associated risks. Warehouses are typically covered under separate types of insurance due to their function as storage facilities rather than service providers.