What Is Business Personal Property Insurance?

Business personal property insurance protects businesses against losses caused by theft, fire, vandalism, and other events that result in damaged goods.
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What Is Business Personal Property Insurance?

Written by Brian Greenberg
CEO / Founder & Licensed Insurance Agent

Last updated: November 24th, 2022

Reviewed by Paige Geisler
Licensed Insurance Agent

It covers things such as computers, office furniture, and even heavy equipment. If it’s a physical item that your business owns — other than the building itself or a company vehicle — business personal property insurance likely covers it.

What is a Business Personal Property Insurance Policy?

A business personal property insurance policy is a type of insurance that covers the physical property owned by a business. This can include furniture, equipment, electronics, machinery, and other items needed to run your business. If any of these things are lost, damaged, or stolen, business personal property insurance protects the company from financial loss.

What is Included With Business Personal Property Insurance?

Business personal property insurance includes coverage for just about every physical asset owned by the company, with a few notable exceptions. It doesn’t cover buildings or real estate. For that, your company needs commercial property insurance. It also doesn’t cover company-owned automobiles. You can insure those by purchasing commercial auto insurance coverage.

What Assets Does a Business Personal Property Insurance Policy Cover?

A business personal property insurance policy typically covers most of the physical assets your business owns. The most common types of property covered include the following:

  • Office furniture
  • Office equipment
  • Heavy machinery
  • Computers and other electronics
  • Office furnishings
  • Office supplies
  • Retail inventory

Not all policies offer the same coverage. Before committing to a business personal property policy, read the fine print to understand exactly what is and isn’t covered. You should be particularly careful to make sure any high-value items owned by your business are covered. If not, you might need to purchase additional protection. Your insurance agent should be able to go over the policy in detail with you to make sure it covers all relevant items.

How Much Does Business Personal Property Insurance Cost?

The cost of a business personal property insurance policy depends on the amount of coverage purchased and the type and location of the business.

About half of all business personal property policies purchased cost between $400 and $800 per year. While it’s possible to find a policy for under $400 a year, coverage might be limited. A business that needs to insure high-value property might end up paying $1,200 per year or more.

What Businesses Need a Business Personal Property Insurance Policy?

A business personal property insurance policy is a must for any business that has tangible assets. If something happens to your property, whether it’s a fire, theft, or other covered loss, your policy will help you recover the costs associated with replacing those items. Otherwise, your business will be looking at a significant financial loss.

Retail businesses, in particular, are vulnerable to the impact of a loss of physical property. If a retailer’s inventory is lost or damaged to a significant degree, their entire business model falls apart. This makes personal property insurance a necessity for remaining a going concern.

If your company is in the market for business personal property insurance, there are several places to look for a policy. You can check with your current insurance agent or look for a local broker. Alternatively, some online insurance brokers offer competitive rates on business personal property policies.

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