This type of insurance covers inventory that’s rented and things you own to generate business income. Think movable items like fixtures, equipment, furniture, and office supplies.
Get coverage for an accidental coffee spill on a computer, and/ or damage from a burst pipe or fire.
This is important coverage for your business property.
What is Property Insurance for a Business?
Business personal property (BPP) is defined as inventory you can move that your business owns. A business owner policy (BOP) is umbrella coverage that includes insurance for your property. These generally cover the structures and permanent fixtures.
BPP insurance covers all the other stuff. What would move if you picked the building up and shook it. These items are also called tangible personal property. When you start investigating, you’ll see there are different types of business insurance.
Why You Should Have Business Personal Property Coverage (BPP)
Small business owners can use this kind of insurance coverage. Check out these business insurance benefits.
Here are five other reasons why these BPP policies help. Remember, little or no coverage leaves you open to lawsuits.
- They Protect Your Inventory – The financial losses from things like sprinkler leakage or fire damage are covered.
- They Cover The Furniture – Meeting room tables, furnishings and other moveable property important to your business can be replaced. Even if you move to a different location. Get policies that include important inventory items like scissors and electronics.
- Equipment and Machinery Are Included – Don’t let equipment breakdowns cost your business time and money. Especially when water damage is the culprit.
- Some Improvements Too – Made improvements to a leased space as a tenant? A BPP policy covers repairing or replacing property when there’s been vandalism or an explosion.
- These Coverages Protect Upgrades – Have you done permanent renovations to a business? Like built-in cabinets and/or custom lighting? A BPP cover policy will look after the replacement cost.
What is Covered by Business Personal Property Insurance?
BPP insurance will cover everything from labor and materials to services. Below is a list of five items any insurance company should include.
Office Supplies
Business personal property insurance covers some of the things you might not expect. Like pens, staplers and even calculators. The little items small business owners might not think of after a fire. BPP coverage looks after the things on your desk.
Heavy Equipment
Policies include big items small business relies on too like forklifts and excavators. This insurance protects a construction business from financial loss.
Computers
Insure brick and mortar and protect eCommerce SMBs with BPP insurance. A good insurance carrier covers desktops, laptops, smartphones and tablets.
Furnishings
A business personal property policy even covers the curtains, blinds, and rugs. Are you still wondering how much a business really needs and for what? Keep reading.
Leased Personal Property
Personal property insurance BPP covers equipment like the leased personal property you’re contracted to insure. This is different from a homeowners policy.
What is Not Covered by Business Property Insurance?
Likewise, some things are not covered by these insurance products. Keep the following list in mind for business purposes.
This insurance doesn’t include:
- General Liability Insurance – There’s usually no general liability coverage for basic risks. Like property damage on something that doesn’t belong to you.
- Commercial Auto Insurance – Collisions, towing, rental reimbursement and the like. A business personal property policy won’t have any of this.
- Workers Compensation Insurance – Got employees? This is a requirement in most states. It covers items like work-related injuries and medical bills. And you won’t get it with business personal property insurance.
Remember, a standard homeowners policy won’t do if you work from home. Especially if you want to bring on new employees.
How Much is Business Personal Property Insurance Coverage?
Wondering how much small business insurance costs? These coverages vary and the cost depends on the services you pick and the size of your company.
It breaks down like this.
- Know what the business property is worth.
- Location and age as well as replacement versus actual cash value matter for the business personal property insurance costs.
The median for commercial property insurance, which is part of a BPP business owner’s policy, is $63 monthly. Most small businesses pay between $400and $800 annually.
How to Choose the Right Property Insurance for Your Business
Getting the right business owner’s policy is about shopping with the right insurance company. Business personal property policies need a little extra finesse. Get good personal property insurance coverage with the following.
Here are five tips to get the right business property insurance from the right provider.
- Understand the Different Types. Any insurance company offers different policies. If you’re in business the chances are you won’t need homeowners insurance. But getting personal property coverage for equipment is important.
- Understand The Specific Risks. Each business is unique. A commercial insurance policy should cover you for natural disasters if you’re in a flood zone. Don’t forget aspects like spoilage coverage.
- Put Good Policies Ahead of Cost. Personal property insurance cost shouldn’t be the deciding factor. Picking cheap policies to save on premiums can cost in the long run.
- Understand What Affects Your Rates. Make sure you know what will affect your quote. Your experience and claims history can change the numbers on a commercial property quote.
- Consider The Deductibles. The business premises can affect what an insurance provider offers. Higher deductibles on things like lost income mean lower premiums. But you’ll need to pay those when you file a claim.
How to Get Get Property Insurance for Your Small Business
Maybe you’re a home-based business, or an eCommerce and/or brick-and-mortar shop.
Follow these steps to get a business personal property policy from a credible insurance company.
Look at The Company History/ Reputation
Looking for a casualty insurance company? Start by looking at their experience. Casualty insurance and insurance for your property are often bundled.
Look At Customer Service
Offering business interruption insurance is important. But so is 24/7 customer service. That should include online claim reporting and bill payments.
The best small business insurance companies will also suggest you overestimate the coverage. That’s not necessarily a sales pitch. A lawsuit can really damage your small business.
Here’s a final tip. Look for extra expense coverage. You can be receiving compensation while your business is repaired or relocated. Now you’ve got what you need to look for business personal property insurance.
Image: Depositphotos
This article, “What is Business Personal Property Insurance?” was first published on Small Business Trends
