Business personal property (BPP) refers to movable items owned by your business. It includes office supplies, furniture, computers, machinery – basically everything except for the building itself.
What is business personal property?
Business personal property is also called business contents. It includes everything from pens and other small items to computers and manufacturing equipment. The purchase of BPP is a tax-deductible business expense, and so is the cost of insuring it.
Business personal property includes:
- Office supplies: pens, staplers, and calculators
- Furniture: chairs, desks, and tables
- Furnishings: rugs, blinds, and curtains
- Computers: desktops and laptops
- Electronics: smartphones and tablets
- Heavy equipment: forklifts and excavators
- Machinery: 3D printers
- Any other movable items used by your business
Protect your BPP with commercial property insurance
It’s important to keep track of your business personal property and its costs to make sure you have enough commercial property insurance to protect your business. Without an accurate inventory and estimate, your policy might not cover all of your business equipment and furnishings if they are damaged, destroyed, or stolen.
When purchasing property insurance, check with your agent to make sure it provides sufficient coverage. Business personal property should remain at your business to ensure coverage under your commercial property policy. For items that leave your commercial space, you may need inland marine insurance.
Company-owned vehicles are not considered business personal property. To protect them from losses, you will need commercial auto insurance.
What is the difference between tangible and intangible personal property?
There are two types of personal property: tangible and intangible. Tangible property refers to physical items you can touch, and includes items such as computers, furniture, and machinery. Intangible property, on the other hand, cannot be felt or touched. It may include securities, bonds, patents, or intellectual property that can be bought, sold, or licensed.
Typically, a business only needs to include its tangible personal property in a BPP estimate. However, companies with intellectual property concerns may want to invest in insurance for intangible assets as well. Talk to one of our agents to find out more about protecting intangible assets.
What is the difference between actual cash value and replacement value?
When choosing business personal property insurance, you may have a choice between insuring items for their actual cash value or their replacement value. Basically, the actual cash value is an item’s current market price, with depreciation taken into account.
The replacement value is the cost of buying a brand-new replacement for a lost or damaged item. Replacement value policies tend to cost more. You may also be required to repair or replace the item before seeking compensation.
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