An employee spills an entire cup of coffee on your business computer.
A pipe bursts and ruins everything in your stockroom.
A fire destroys the $5,000 custom shelves you just installed.
Business personal property (BPP) covers the equipment, furniture, fixtures and inventory that you own, use or rent inside your workspace. Basically, it covers almost everything except the building itself.
BPP covers these main types of property:
The tools and supplies you need to run your business, such as computers, tools, monitors, television or industry-specific items for your business.
The goods, merchandise, or supplies you sell, such as clothing, books, jewelry or food.
The furnishings or decorations you use for your business, including chairs, tables, lamps or artwork.
The improvements you made to your space, such as custom lighting, built-in cabinets or other permanent renovations.
If you’re a small business owner with a brick-and-mortar shop, restaurant, studio or office that you own or work out of, BPP is essential coverage for all your inventory, equipment, upgrades and furniture.
Here are some examples of how business personal property works with different businesses:
Sam owns a clothing store. The sprinklers fail at the commercial space he rents and destroy all of his new inventory. BPP would help cover the replacement costs of his inventory and the repair costs of ruined furniture, computers and light fixtures.
Sophia owns a restaurant. An electrical outage in the neighborhood shuts off her freezers and refrigerated storage, ruining all of her food inventory. Luckily, her BPP insurance includes spoilage coverage for restaurants.
Joe owns a photo studio. A fire destroys all of his negatives, cameras and frames, including the artwork he has for sale. BPP helps Joe pay to replace his photographs, inventory and equipment.
Lisa owns a hair salon. The building is broken into and all the chairs, sinks and mirrors are vandalized. Lisa’s BPP coverage helps her replace these items so she can keep her business open.
Frank owns a janitorial business. The building’s water main burst overnight, flooding his storage unit and rusting several floor scrubbers. BPP helps pay to clean the unit and replace the ruined machines.
Business income coverage helps pay for lost income while a business is forced to close due to some unexpected events, such as accidents or storms. It is included when you purchase a business personal property insurance.
The main difference between a business personal property insurance and a business owners policy is a BOP often covers entire structures, permanently-installed fixtures and the contents of the building. A BOP also includes general liability coverage.
Business personal property insurance just covers the contents of your business space — equipment, inventory, furniture and upgrades you made to the space. If you don’t own the building you use to house your business, BPP (without a BOP) is ideal coverage for protecting everything inside the property you rent.
You need your equipment, inventory and other business property to do your job. Business personal property insurance can help you replace everything if something happens at your business.
When you have BPP insurance, it gives you peace of mind. You won’t have to worry about what you would do if a pipe bursts and floods your store or if the power goes out and you lose all your restaurant’s inventory for the week.
Your BPP policy covers many different situations and types of property (although not the building itself), but it doesn’t cover everything. You might need to buy other types of insurance, depending on your business.
General liability is the most common type of insurance small business owners buy because it covers many basic risks that most businesses face. It can provide financial help if your business is held responsible for an injury to someone other than an employee or damage to property that doesn’t belong to you.
BPP insurance does not cover professional mistakes. For that, you’ll need professional liability insurance, also known as errors and omissions insurance. It can help cover costs if a client claims you gave bad advice, made a mistake or missed a deadline and caused financial harm.
If you have employees, you are legally required in most states to have workers’ compensation insurance. A workers’ comp policy will cover medical bills for work-related injuries or illnesses, lost wages, and it provides important liability protections for your business.
Most personal auto insurance policies won’t cover you for injuries or damages if you drive for business purposes. You are required by law in most states to have commercial auto insurance if you or your employees use a business-owned vehicle.
BPP coverage can start as low as $18 a month when you purchase a policy with Next Insurance, although the cost of BPP insurance is different for each business. Several factors influence the price you’ll pay for coverage, including the type and size of your business, how much equipment and inventory you have and how much coverage you want to purchase.
The amount of risk that you face in your industry is used to determine your insurance costs. If your business is in an industry that is more prone to accidents and injuries, than you will typically pay more for insurance. Construction workers will typically pay more than florists.
If you own a restaurant you might have hundreds of thousands of dollars in specialized kitchen equipment and dining furniture, not to mention the food you keep stocked. Expensive equipment and inventory that’s necessary for running your business will cost more to insure than a shop that requires almost no custom infrastructure or equipment, such as a bookstore.
With Next Insurance, you can purchase BPP coverage online and get your certificate of insurance 10 minutes or less.
Start an instant quote to see options for your business. Here’s how the process works:
We’ll ask you some basic questions about your business and operations, including:
After you share your information, you’ll have instant access to a customized business personal property insurance quote and other recommended coverage.
If you like what you see, you can adjust the package limits and make your purchase. Your insurance will begin immediately after payment, and you’ll have access to your certificate of insurance.
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Do it all 100% online or talk to a licensed U.S.-based advisor
Our U.S.-based, licensed insurance advisors are standing by to answer your questions. Call us at 1-855-222-5919.
No matter what kind of business you run, we have tailored coverage to fit your needs. Plus, you’ll save up to 10% when you sign up for more than one policy. How’s that for a win-win?