What is business personal property insurance?
- Business Insurance Basics
Business personal property insurance might sound like a contradictory term (is it business or personal?), but itâs really a pretty simple coverage: it will pay out to repair or replace items you have in your place of business in case of damage or destruction.
What kind of property is covered?
In general, business personal property insurance covers any property in your building that isnât permanently attached. Imagine a giant gorilla scooping your building up, turning it upside down, and shaking it. What would fall out? Broadly speaking, those items are whatâs covered under business personal property.
It will also cover the property of others thatâs in your care. For example, if your building burns down while youâre renting a few pieces of small equipment, this coverage will reimburse the rental company for the cost of replacing the equipment.
Finallyâand less well knownâif you rent your building and have made permanent improvements to it, business personal property insurance will cover the cost of replacing or repairing them if they are damaged in the event.
What kind of property isnât covered?
Great question. Business personal property wonât cover any cars or trucks in your buildingâthatâs what vehicle insurance is for. It also wonât cover any money or securities you store in the building, unless you purchase an optional coverage. Finally, it doesnât cover your papers and recordsâso be sure to back up all your paperwork to the cloud.
Anything else to know about business personal property insurance?
Like many other insurance coverages, a business personal property policy wonât cover your property in the case of a natural disaster, such as an earthquake or a flood. Youâll need to purchase separate coverages for that is part of business owner's policy. (For what itâs worth, this insurance also wonât cover you if your property is seized by the government.)
Also, itâs worth mentioning that this coverage doesnât cover the building itself. If you own your building, you should consider purchasing business property coverage for your facility.
Get a quote for business property and business personal property from Huckleberry (online business insurance provider). It only takes 7 minutes. Everythingâs online. Everythingâs easy.