If you run a business, you've probably invested thousands—maybe even hundreds of thousands—of dollars in equipment, inventory, furniture, and supplies. Here's the uncomfortable truth: all of that could disappear in a single fire, break-in, or natural disaster. Business personal property (BPP) coverage is the safety net that keeps those losses from destroying your business. Think of it as insurance for everything inside your business that isn't nailed down—and even some things that are.
What Business Personal Property Coverage Actually Protects
Business personal property insurance covers the physical, movable assets your business owns or rents. If you can pick it up and carry it out of your building (or at least wheel it out), it's probably covered. This includes your office computers and printers, desks and chairs, filing cabinets, tools and machinery, inventory waiting to be sold, and even the boxes of pens and paper clips in your supply closet.
For retail businesses, your inventory is often your biggest asset. If you run a clothing boutique and a pipe bursts overnight, ruining $50,000 worth of merchandise, BPP coverage steps in to replace it. If you're a contractor, your specialized tools—from power saws to laser levels—are covered when they're stolen from your office or workshop. Even restaurants benefit: your commercial ovens, refrigerators, food processors, and dining room furniture all fall under BPP protection.
One detail that surprises many business owners: BPP typically covers your property when it's within 100 feet of your premises, even if it's outside or in a vehicle. So if someone breaks into your work van parked in your lot and steals your equipment, you're covered—as long as it's within that 100-foot radius.
What's Not Covered (And Why It Matters)
Here's where business owners often get caught off guard. BPP doesn't cover everything business-related—not even close. The building itself isn't included. If you own your commercial space, you need separate building coverage. If you lease, that's typically your landlord's responsibility, though you may want coverage for leasehold improvements you've made.
Business vehicles need commercial auto insurance, not BPP coverage. Your company trucks, delivery vans, and company cars require their own policy. The same goes for property in transit—if you're shipping inventory across the country or moving equipment to a job site, you need inland marine insurance to protect it while it's on the road.
Intangible assets like patents, trademarks, copyrights, and customer data aren't covered either. If you lose your customer database in a cyberattack, BPP won't help—you'd need cyber liability insurance. Money and securities, livestock, land, and crops are also excluded from standard policies.
Common perils that aren't covered include floods, earthquakes, wear and tear, mechanical breakdown, and employee theft. Your equipment gradually wearing out from normal use? That's on you. A dishonest employee walking off with merchandise? You need crime insurance. A flood destroying your warehouse? You need flood insurance. These gaps are why reviewing your policy carefully matters—you don't want to discover these exclusions after filing a claim.
How Much Coverage You Actually Need
This is where many business owners make expensive mistakes. Most commercial property policies include something called a coinsurance clause. It requires you to insure your property for at least 80-90% of its replacement value. If you don't, you become your own co-insurer for any loss, even small ones.
Here's how this plays out in real life: Let's say your business property is worth $100,000, but you only bought $60,000 in coverage to save money on premiums. Your policy has an 80% coinsurance requirement, meaning you should have carried at least $80,000. When you file a $20,000 claim for storm damage, you won't get the full $20,000. Instead, the insurance company will only pay you 75% (because $60,000 is only 75% of the required $80,000), leaving you with $15,000 and a $5,000 gap to cover yourself.
The solution? Create a detailed inventory of everything you own. Walk through your space with a camera or smartphone and document every piece of equipment, furniture, and inventory. Save receipts, serial numbers, and purchase dates. Not only does this help you determine the right coverage amount, but it also makes the claims process infinitely smoother if disaster strikes. Update this inventory annually—as your business grows and you acquire new assets, your coverage should grow too.
What You'll Actually Pay for Coverage
Good news: BPP coverage is generally affordable, especially considering what you're protecting. Small businesses typically pay between $50 and $100 per month for coverage, with 62% of businesses spending $100 or less. The national median sits around $67 monthly, or about $800 annually.
Your actual cost depends on several factors: the total value of your property, your industry (a jewelry store pays more than an accounting firm), your location, your claims history, and the coverage limits you choose. Many business owners bundle BPP with other coverage through a Business Owner's Policy (BOP), which combines property coverage, general liability, and business interruption insurance at a discount. The average BOP costs about $118 per month through most carriers.
Some insurers offer scaled coverage options—for example, $10,000 in coverage for around $99 annually, or $30,000 for about $299. If you have significant inventory or expensive equipment, you'll pay more, but you're also protecting more. A furniture store with $2.6 million in inventory, fixtures, and equipment might pay around $4,675 annually—less than 0.2% of what they're protecting.
Getting Started: Your Next Steps
Start by inventorying your business property today. You don't need fancy software—a spreadsheet and your smartphone camera work fine. Walk through your space and document everything, from your espresso machine to your computer servers. Estimate replacement costs, not what you originally paid. That five-year-old laptop might have cost $1,500 new, but replacing it today might cost $1,800.
Once you know what you own, talk to a commercial insurance agent who can help you understand your coverage options. Ask specifically about coinsurance requirements, deductibles, replacement cost versus actual cash value coverage, and any exclusions that might affect your specific business. Don't just buy the cheapest policy—buy the right coverage for your situation.
Finally, review your coverage annually. As your business grows, your coverage needs change. That $50,000 policy that worked perfectly when you started might leave you seriously underinsured three years later when you've tripled your inventory and upgraded all your equipment. Set a calendar reminder each year to reassess your property value and adjust your coverage accordingly. It's a small investment of time that could save your business when you need it most.
