What is Business Personal Property Insurance?

Business personal property insurance (BPPI) is one of the most important policies that your business should have. However, getting a BPPI typically depends on the type of business you run.

But basically, as long as your business has properties—things that you can move from one place to another within the business premises—then you definitely need business personal property insurance for protection against unforeseen risks.

You often hear insurance agents and business owners talking about BPPI. If you don’t have a clear understanding of it; don’t worry, I will give you a clear definition.

Definition of Business Personal Property

Before we define BPP insurance, we will first understand the meaning of business personal property. This will help us understand what we are supposed to insure.

Business personal property (BPP) can be defined as “any tangible and movable property used in business.” It’s anything from the computers used by the company for accounting and customer service to the lawn furniture and umbrella at the front of a sandwich shop that allow customers to eat out front.

This is obviously a clear definition. However, in real-world business property assessment, it’s more effective to define business personal property by its function—what it does—rather than by its characteristics. This means using the “business” criteria to determine its classification.

Business personal property can be classified into four groups: (1) personal property of the business owner; (2) property of the partners who do not operate a business; (3) property of the business itself, grouped into performing personal property and performance-assisting personal property; (4) other people’s personal property, commonly customers’ personal property under business control for service.

Definition of Business Personal Property (BPP) Insurance

The business personal property insurance policy covers the business owners against loss or damage to the things in or in front of their businesses that are not considered part of the physical building that contains the business.

The essence of BPP insurance is to help the insured continue its business (after a loss).

All BPP categories are very important in business property insurance. Despite all personal property in a business being tangible, “business” is the keyword to identify business personal property.

Business Personal Property Insurance Example

Here’s an example to illustrate how BPP insurance works:

Example Scenario

Business: Jane’s Boutique

Covered Property:

• Retail inventory (clothing, accessories)
• Display fixtures and shelves
• Office furniture (desks, chairs)
• Computers and cash registers
• Signage

Incident:

At night, there was a fire that broke out in Jane’s Boutique. Unfortunately, the fire damaged a large portion of her inventory and destroyed several display fixtures and office equipment. Fortunately for Jane, she has the best business personal property insurance for her boutique. So she wasn’t really bothered after the fire incident because of her policy.

Claim Process:

• Reporting the Claim: Jane contacts her insurance provider immediately to report the fire and the resulting damage.
• Assessment: An adjuster from the insurance company visits the store to assess the damage and determine the cost of replacement or repair for the damaged items.
• Documentation: Jane provides an inventory list, receipts, and other documentation to substantiate the value of the damaged items.
• Payout: Based on the assessment and documentation, the insurance company calculates the total loss and issues a payout to Jane.

Outcome:

With the insurance payout, Jane is able to quickly replenish her stock, replace damaged equipment, and get her store back in operation. Obviously, the BPP insurance policy has helped her minimize the financial impact of the fire.

The example I gave highlights the importance of business personal property (BPP) insurance in protecting a business’s assets. It will ensure business continuity in the event of unexpected events.

How Much is Business Personal Property Insurance?

The average cost of business personal property insurance is $25 per month. However, the price you will pay depends on the business.

There are some factors that influence how much you will pay for BPP insurance, such as the size and type of business you own, the price of inventory and equipment, and how much insurance coverage you want to buy.

What Does Business Personal Property Insurance Cover?

Business Personal Property (BPP) Insurance covers:

• Furniture and Fixtures: Desks, chairs, shelves, display cases, and other fixtures.
• Equipment and Machinery: Computers, printers, manufacturing equipment, and other machinery used in business operations.
• Inventory: Products held for sale, raw materials, and finished goods.
• Office Supplies: Stationery, pens, paper, and other office supplies.
• Electronics: Telephones, tablets, cash registers, and other electronic devices.
• Signage: Indoor and outdoor signs that are not permanently affixed to the building.
• Leasehold Improvements: Enhancements made to a leased space, such as new carpeting or built-in shelving.
• Other Tangible Assets: Any other physical items used in the business that are not part of the building structure.

Getting Business Personal Property Insurance Quotes

Since you have made up your mind to buy BPP insurance, the  next step from here is to get BPP insurance quotes.

There are several ways to get insurance quotes. However, I often recommend two to my readers: visiting the website of the insurance company you want to buy your policy from and walking into the office of the insurance company and getting quotes.

This way, you won’t fall victim to any insurance scams or people parading themselves as insurance agents. You will get the quotes directly from the company.

Furthermore, I advise you to visit more than one insurance company and get their business personal property insurance quotes so that you can compare and know which one is best for you.

So you don’t have to wait until something bad happens to your business’s personal property before you take action.

Conclusion

As a business owner, you will always be ahead of competitors who don’t have insurance. No matter the size, as long as you have properties that help you run your business smoothly, you should have insurance to protect them.

We can’t always control what happens, but we can control how we recover from unfortunate incidents.

The first step to buying BPP insurance is to read this article. Since you have done that, your next step is to get business personal property insurance quotes from different companies. This will help you save on your insurance policy.