This type of business insurance, also known as commercial property insurance or business personal property insurance (BPP), helps protect your company's own or rented equipment, buildings, and personal property. Business personal property insurance covers your real property, known as tangible assets, but not your intangible assets. Business personal property (BPP) insurance covers all the transportable items your company owns. Basically, things you can pick up and carry.
Business personal property insurance covers movable property within your workspace or tangible assets. Tangible assets are things you can physically touch or see, such as the computer or chair. Building and personal property insurance limits apply separately in each case, except for a small amount of additional coverage specified in the policy. If your coinsurance provision requires a limit of 80% of your property, but your limit amount is lower than that amount, your insurance company may limit the payment to the percentage you specified.
If your business includes inventory, machinery, furniture, and other equipment, you'll likely need property insurance as part of your business insurance coverage. In addition to inventory and equipment breakdown coverage, the BOP includes general liability and property insurance as standard. If you're running your business from home, the items you use to run your business are probably not covered by your homeowners insurance because they're considered business property. The Business Owners Policy (BOP) includes general liability insurance and commercial property insurance, and it may cost less than if you purchased each of these policies separately.
If your computer was insured for its replacement value, the insurance company would cover the cost of buying a completely new replacement. While BPP insurance covers items stored at your workplace, it doesn't include your company's assets while they are in ground transit or stored outside. If someone owns the building in which your business operates, a business policy must cover both the building and the BPP it contains. To ensure that your company has the protection it needs, read on to understand what BPP is, what it covers and what it doesn't cover.
Replacement cost Replacement value BPP coverage assigns a value based on how much it costs to purchase a completely new replacement for a specific covered item. Business personal property insurance provides financial protection if you need to repair or replace damaged, stolen, or lost business assets. The building and personal property coverage form will detail the covered losses, which may include fires and acts of vandalism, but will detail additional coverages, exclusions and limitations, as well as insurance limits and deductibles. This type of insurance specifically defines what assets are covered, such as buildings and personal property, and what assets are not covered, such as money in cash and animals.
To do this, you would need commercial auto insurance, which covers property damage, legal bills, and medical expenses if one of your vehicles is involved in an accident.