(419) 423-9145

Understanding Business Personal Property (BBP) Insurance

Understanding Business Personal Property (BPP) Insurance 

June 11, 2024

Share:

Business personal property is one of the main coverage items in a commercial property insurance plan. Business personal property is often abbreviated to BPP, which you will see that referenced here. BPP insurance can be a bit confusing because it can cover a wide variety of items. We’ll breakdown some of those frequently asked questions below.

Detailed Items covered by BPP insurance. 

Business Personal Property insurance typically covers a wide range of tangible assets essential to your business operations. These items may include:

Equipment: Machinery, tools, computers, and other equipment necessary for business operations are generally covered under BPP insurance.

  • Furniture: Office furniture, including desks, chairs, filing cabinets, and fixtures, is typically included in BPP coverage.
  • Inventory: Goods and products held for sale, raw materials, and finished goods are commonly covered to protect against theft, damage, or loss. Can be listed on an insurance plan as stock coverage.
  • Electronics: Computers, networks equipment, televisions, printers, biz hubs, and other electronic devices essential for business activities are often covered by BPP insurance.
  • Fixtures: Permanent fixtures such as lighting, signage, and built-in shelving are typically covered as part of your business property.
  • Personal Property of Others: Property that is in your care, custody, or control, but that you don’t legally own.
  • Improvements and betterments: Any improvements or alterations made to the property to accommodate your business needs may be covered under BPP insurance.
  • Business Income/Interruption: This is the coverage item that is forgotten about when it comes to BPP coverage. It is one of those intangible business exposures in a business that needs coverage. This line item of coverage can often be one of the most important items if a claims loss occurs and can have coverage limits in the 7 and 8 figure range for small to medium size businesses. In some cases, BPP insurance may also provide coverage for lost income and expenses incurred due to a covered loss, helping your business recover and resume operations swiftly.
  • Property Endorsements- Almost all plans we issue have some type of inclusive property endorsement included. These endorsements are used as a catch all for SMB business insurance plans. This is the most affordable way to endorse a policy and pick up a ton of important coverages. Some items that are typically include are outdoor sign coverage, employee theft, forgery, water backup, outdoor fences, outdoor property, outdoor lights, property in transit, property off premises, valuable paper and records, ordinance of law, theft of money and securities.

What type of businesses need BPP insurance?

BPP insurance isn’t reserved for large corporations or specific industries; it’s essential for businesses of all sizes and types. Any business that owns tangible assets, such as equipment, furniture, inventory, or electronics, can benefit from BPP coverage. Whether you operate a retail store, a manufacturing facility, or a home-based business, protecting your valuable assets with BPP insurance ensures financial security in the face of unforeseen events.

Does BPP coverage apply with Natural Disasters?

Each insurance plan is different, and each coverage form has a set of coverage perils that are either included or not specifically excluded. In the Midwest where we’re located most natural disasters scenarios would likely afford coverage to business personal property coverage. Many of our natural disasters in the Midwest are driven by tornados, straight line winds, hailstorms, which all would be covered perils on a policy that we would issue for our clients. There are 2 main natural disasters that could be excluded if not added to a plan, which are flood and earthquake. Earthquake coverage can be endorsed to a business insurance plan in the Midwest. Flood Insurance can be purchased with a secondary insurance policy and can be purchased on the private insurance market or a plan that is underwritten on a FEMA plan.

Do home based businesses need BPP insurance? 

Home-based businesses often overlook the importance of BPP insurance, assuming that their homeowner’s insurance policy provides adequate coverage. However, homeowner’s insurance typically has limited coverage for business-related assets, leaving home-based entrepreneurs vulnerable to losses. BPP insurance offers tailored protection for business property stored or used within your home, providing peace of mind and financial security for your entrepreneurial endeavors. $2,500 is the typical amount of business personal property that is included in a homeowner’s insurance plan.

What is not covered by BPP Insurance? 

Each insurance policy would need to be reviewed to see what is not covered. Most insurance plans are issued using a standard form that is provided by the insurance service office (ISO).  Most plans will exclude flood and earthquake coverage from a plan, there may be other perils of coverage that would be excluded. A full review of your insurance plans and your needs would be our recommendation.

What does BPP cost? 

This is a great question. Let’s give a few actual examples of what various items cost on some in force business property policies.

  • Manufacturer- Stock Coverage, $2,650,000 limit- Annual Cost $2,303.
  • Distributor- Personal Property of Others- $4,240,000 Limit- Annual Cost $4,300.
  • Manufacturer- Machinery & Equipment- $45,141,000 limit- Annual Cost $44,120.
  • Contractor- Business Personal Property- $150,000 limit- Annual Cost $936.
  • Manufacturer- Business Income- $18,739,000 limit- Annual Cost- $17,382.
  • Furniture Store- Personal Property- #2,620,00 limit- Annual Cost- $4,375.

Conclusion

Business personal property insurance is a fundamental component of comprehensive risk management for businesses of all sizes. By understanding what is covered, assessing your specific needs, and exploring available options, you can ensure that your assets are adequately protected against unforeseen events.  Talk to a licensed insurance agent at our company today to see how affordable the right coverage can be.

Start A Conversation With One Of Our Insurance Professionals