When you picture your business, you probably picture your real estate (land) and building(s) first, right?
But what about everything inside those buildings? Things like staplers, computers, office chairs, coffee makers, and even pens and paper.
These things are all part of your business’s personal property. Yes, as it turns out, just as an individual or a family can own personal property, so too can a business.
So, why is this important?
It’s important because you need commercial insurance for this personal property, and not all commercial policies include it (or include enough of it). Some businesses, for example, have personal property — such as heavy machinery and computer technology — that actually costs more than the building it’s in. In these cases, a basic commercial property insurance plan isn’t going to cut it if disaster strikes. That’s because many basic commercial property policies cover only buildings and real estate.
To ensure that your expensive property is covered, it’s crucial that you make sure you have extra coverage for “business personal property.”
Business Personal Property Defined
We understand that these terms can get a little confusing, so let’s break down what business personal property (BPP) is a little bit further.
Basically, business personal property refers to the contents of your business — everything inside your business except the actual property your business is on (the real estate) and the actual building that houses the property. In fact, business personal property is often called a business’s “contents.” It’s what’s inside.
BPP includes everything from your office furniture and furnishings (tables and chairs, rugs and curtains, desks and conference tables) to the heavy equipment and machinery or electronics that make your business run. Anything that’s not nailed down can usually be considered BPP, expect things that you have for sale or rent.
Types of Business Personal Property
There are two main types of business personal property: tangible and intangible.
- Tangible personal business property is anything that you can actually touch (like a stapler or machine).
- Intangible personal business property is anything that you own, but that cannot be touched. The latter includes things like computer software or patents.
How Do You Ensure Your BPP Is Covered With Commercial Insurance?
As stated, basic commercial insurance may not cover BPP, or, it may not cover enough of your BPP. It all depends on the plan you choose. Naturally, if your business has invested a lot in your personal property, it’s even more crucial to ensure that you have adequate insurance to cover this property in the event of a loss, such as a fire or theft.
Need to Protect Your Business’s Personal Property?
Thayer-Innes’s commercial insurance coverage can protect your business in the event of an unexpected accident, such as a severe storm, fire, or malicious act. From general liability insurance, which covers possible injuries to third parties or their property on your premises to comprehensive property insurance, which protects your business’s contents and physical property, we’ll ensure your business is protected no matter what.
Allow Thayer-Innes Insurance Agency and Freeman Bunting Insurance Agency to cater your commercial insurance policy to your particular needs. Contact us today to learn more.
About Thayer Innes and Freeman Bunting Insurance Agencies
At Thayer-Innes Insurance Agency and Freeman Bunting Insurance Agency, we strive to provide comprehensive insurance solutions to support Ann Arbor homeowners. Our homeowners’ policies can be tailored to meet your specific risk exposures and provides much more coverage than a traditional policy, giving you the peace of mind you deserve. For more information about our products, contact us today at (855) 395-6316.