Business personal property

What counts

In a commercial property policy, business personal property is the part that covers your things rather than the building. It typically includes:

• furniture, counters and fixtures
• machinery and equipment, from ovens to salon chairs to diagnostic scanners
• inventory, stock and supplies
• computers and other office equipment

Many policies also cover improvements you’ve paid for in a rented space, like a built-out kitchen or new flooring, and some include limited coverage for other people’s property while it’s in your care. Coverage applies to the causes of loss your policy lists, subject to its limits, deductible and exclusions.

Where it applies

BPP coverage usually applies at the premises listed in your policy, with only limited coverage for property elsewhere. Tools that travel to job sites or ride in your truck generally need inland marineInland marine insuranceInland marine insurance covers business property that moves or is kept away from your main location, like tools on job sites, goods in transit and property held for others.Read the definition coverage, such as tools and equipment insurance.

How a claim is valued matters too. Your policy typically values a claim at either replacement costReplacement costReplacement cost is a way of valuing property losses that pays to repair or replace damaged items with new ones of like kind and quality, without subtracting depreciation.Read the definition or actual cash valueActual cash valueActual cash value (ACV) is what damaged property was worth when it was lost, usually its replacement cost minus depreciation for age and wear.Read the definition, and a coinsuranceCoinsuranceCoinsurance is a property policy condition that reduces your claim payment if you insure your property for less than a set percentage of its value, such as 80%.Read the definition condition can reduce the payment if your limit is too low for what you own.

Why it matters for a small business

If you rent, your landlord’s insurance usually covers the building, not what’s inside your space. That part is up to you. Pick a limit that would replace everything you own at today’s prices, and update it as you add equipment or carry more stock. A walkthrough video and a folder of receipts make a claim much easier to prove. The commercial property page shows how limits and deductibles work together.