Q: I borrowed my neighbor’s handcart for a week to move across the hall. I also hired him for two days to help in the move. If the handcart is stolen or ruined, am I liable?

A: Regarding one who borrows an item, the Torah states: “If the owner is with him, he shall not pay (Shemos 22:14).”

The Gemara (B.M. 94a) explains that if the owner of the item is in the employ or service of the borrower, the borrower is not liable for the item. This exemption is called “shemirah biv’alim.”

The owner must be in the service of the borrower when the item is initially borrowed, since at that point the borrower assumes liability.

Even if the owner is no longer in his employ when the item is lost, the borrower remains exempt (C.M. 346:1).

This exemption applies also to other shomrim. There is a dispute in the Gemara (95a) whether it extends even to negligence; the halachic ruling is that the borrower or guardian remains exempt (291:28; Pischei Choshen, Pikadon 6:[1]). However, if he actively damaged the item, he is liable for it, like any other person who damages (Pischei Teshuvah 176:13).