Having protection for the building your company does business out of and the business assets inside the structure is important for all small businesses. This form of business insurance is also known as commercial property insurance or business personal property insurance. It’s designed to protect the structure of the company and the business assets within the building.
This coverage can help cover the costs to repair or replace:
- Personal property located at your business
- Tools and equipment you use to operate
- Inventory stored at your office or warehouse
- Furniture, such as couches, desks, chairs and tables
- Computers you use to run your business
- Accounts receivable and other valuable documents
- Outdoor landscaping, like fences
What Does Business Personal Property Insurance Cover?
Business personal property insurance or commercial property insurance can help protect your building, tools, inventory, furniture, clothing and equipment from a variety of claims. This includes:
- Fire damage to your property
- Theft of property or equipment, like someone breaking into your business
- Lost income if you can’t operate because of covered property damage
Is Business Personal Property Protected by Homeowners Insurance?
Commercial property insurance coverage is slightly different than homeowners insurance although they’re similar in many ways. Business property insurance is geared more towards protecting your company from risks, whereas homeowners insurance is designed to protect the primary residence and the home you live in.
Even home based businesses should consider commercial property insurance. Please keep in mind that if you do business out of your home your homeowners insurance policy will not cover the following:
- Technology
- Equipment
- Files
Your home policy also won’t protect your business property if it’s stored in a different location. So, you may want to get business personal property insurance to ensure you have enough coverage for your company.
Is Business Personal Property Covered Under a Business Owner’s Policy (BOP)?
Business personal property is covered under a Business Owner’s Policy. A BOP combines three essential types of coverage that many small business owners need, such as:
- General liability insurance
- Commercial property insurance
- Business income insurance
What Is the Difference Between Tangible and Intangible Personal Property?
Tangible personal property is a physical thing you can see or touch. This can include:
- Computers
- Furniture
- Desks
- Cars
- Tools
Intangible personal property are things your business owns or rents but may not have a physical appearance. This can include things like:
- Patents
- Intellectual property rights
- Copyrights
- Investments
- Partnership contracts
- Digital assets
Who Needs Business Property Insurance?
Most small businesses will at a minimum get property and casualty insurance to protect their company. It’s always a great idea to start your business with a business personal property insurance and general liability insurance. Both of these forms of business insurance can be found in a business owners policy (BOP).
Commercial Property Insurance Quote
If you would like a custom commercial property insurance quote or have additional questions regarding business property insurance, please give us a call today at 916 313 6100