Business Property Insurance: What Is It?


Business Property Insurance: What Is It?
Table of Contents

For every small business, safeguarding your physical site and equipment is essential. That’s where commercial property insurance comes in. This sort of business insurance, also known as commercial property insurance or business personal property insurance (BPP), helps safeguard the owned or rented equipment, building and personal property of your company.

This coverage may assist in defraying some of the following costs:

  • personal belongings kept at your place of business
  • Tools and apparatus you utilize for operation
  • Stock kept at your warehouse or workplace
  • furnishings, including tables, chairs, workstations, and couches
  • The computers you use to manage your company
  • Receivables and other important records
  • Fences and other outdoor landscaping

What Is Covered by Commercial Personal Property Insurance?

Insurance for business personal property can shield your facility, furnishings, and machinery from a range of lawsuits. This comprises:
  • Fire harm to your home
  • Theft of goods or machinery, similar to someone breaking into your place of business
  • lost wages in the event that covered property damage prevents you from operating

Does Homeowners Insurance Cover Personal Property Used for Business?

Homeowners insurance and business personal property coverage are not the same. Compared to a typical homeowners policy, which could include little to no coverage for business property, it provides additional property coverage for your company.

Note that your homeowners policy does not cover your home-based business if you possess one of the following:
  • Files for Technology Equipment
In addition, if your company property is kept somewhere else, it will not be covered by your residential coverage. Therefore, in order to make sure your firm has adequate coverage, you might wish to purchase business personal property insurance.

Does a Business Owner's Policy (BOP) Cover Business Personal Property?

A business owner's policy covers personal property used for business purposes. Three crucial coverage kinds that many small business owners want are combined into a BOP, including:
  • Liability coverage in general
  • Insurance for commercial property
  • Insurance for business revenue

What Separates Tangible Personal Property from Intangible Personal Property?

Anything you can physically see or touch is considered tangible personal property. This may consist of:

  • Computers
  • Furniture
  • Desks
  • Cars
  • Tools
Items that your company owns or rents but which may not be observable physically are known as intangible personal property. This can involve items such as:

  • Patents
  • Intellectual property rights
  • Copyrights
  • Investments
  • Partnership contracts
  • Digital assets

Who Requires Insurance for Business Property?

To help safeguard your company, you must, at the very least, get property and liability insurance. Therefore, in addition to general liability insurance, you should obtain company personal property insurance. You and your company may be exposed to financial risk if you are required to pay claims and losses out of pocket in the absence of certain coverages.


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