Business Personal Property
Plain English
Business personal property, often shortened to BPP, covers the stuff your business owns rather than the building: desks, computers, tools, machines and stock. If a fire or other covered event damages them, BPP pays to repair or replace them, up to its limit. Renters of commercial space usually need it even without building coverage.
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On this page
Definition
Business personal property is the part of a commercial property policy that covers the movable things a business owns and uses, such as furniture, fixtures, machinery, equipment that isn't permanently installed, and inventory. It is separate from coverage for the building.
Why It Matters
Many small businesses lease their space, so the landlord insures the building. Without BPP, the business's own equipment and inventory may be uninsured after a fire or theft.
Real-World Example
Imagine a bakery leases its storefront. A kitchen fire destroys two ovens, a display case and a week of inventory worth $45,000 in total. The landlord's policy covers the building. The bakery's business personal property coverage pays for its ovens, case and inventory, less the deductible, up to its BPP limit.
Common Misconceptions
- Assuming the landlord's policy covers the tenant's equipment.
- Setting the BPP limit once and not raising it as inventory grows.
Key Takeaways
- The California Department of Insurance says business personal property "consists of furniture; fixtures, machinery, and equipment not permanently installed; inventory; or any other personal property."
- It's separate from building coverage.
- Tenants of commercial space often need it even if they don't insure the building.
- Equipment taken off-site may need separate coverage, such as inland marine.
Frequently Asked Questions
Does BPP cover a laptop I take to a client?
It may cover limited amounts away from the premises. Check the policy, or ask about inland marine coverage.
What's it commonly confused with?
Building coverage, which insures the structure itself.
Related Terms
Related Coverages
- Commercial Property Insurance
Related Scenarios
Explore the rest of the Business Insurance category.
Browse Business Insurance terms →Sources
The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- Commercial insurance guideCalifornia Department of Insurance
Educational information, not advice: This page is for general education only, not legal, financial, or insurance advice. Actual coverage, discounts, and requirements depend on your policy’s wording, your insurer, and the laws of your state. Confirm specifics with your own insurer or a licensed agent before making a decision. Insurpedia does not sell insurance and does not recommend specific insurers.