What is Business Personal Property Coverage & What Does it Include?

Posted by The ALS Group on Oct 9, 2014 2:05:11 PM

One of the most underrepresented and disregarded coverage extensions on a commercial property policy is personal property. That is, Business Personal Property (BPP) – the personal property which is owned by the entity that is the named insured on the policy.  BPP covers a variety of items that are typically identified with being owned in relation to the premises identified on the declaration page of your policy. It is not typically intended to insure the personal property of a firm’s employees or guests. Over the course of the last fifteen years there have been several changes to significantly expand the definition of BPP in several different ways. Keep in mind that coverage can vary by carrier and policy form.

While the commercial property policy can have a very broad coverage form, BPP is often an area of coverage that is forgotten or is merely given a lump-sum value, with very little thought because  it is usually dismissed as insignificant or it isn’t as clearly understood as it should be.

So, what is BPP and what does it cover? The following list comes from IRMI, the Risk & Insurance KnowledgeBase and is a brief summary of what is covered under a Business Personal Property extension.

  • Furniture and fixtures
  • Machinery and equipment
  • Stock
  • Other personal property owned by you and used in your business
  • Labor, materials or services furnished or arranged by you on personal property of others
  • Improvements and betterments, such as fixtures, alterations, installations or additions made to a part of the building or structure you occupy but do not own and acquired or made at your expense but cannot legally be removed
  • Leased personal property for which you have a contractual responsibility to insure, unless otherwise provided for under personal property of others.

An annual review of values is equally important - to verify that you have enough coverage for your business personal property as well as for the building itself. After a loss is the not the time to discover that you are underinsured or uninsured. Uncovering potential gaps, and addressing how they can be covered, is just one aspect of how The ALS Group’s Risk Management Assessment can help an organization protect itself.

Click here to request more information about The ALS Group or business personal property coverage.

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Topics: Risk Management Blog

The ALS Group

Risk Management Blog

We manage more than a quarter billion dollars of premiums for a diverse range of clients around the globe. 

Our areas of expertise include:

  • Enterprise Risk Management (ERM)
  • Cyber Security & Cyber Liability Insurance
  • Construction Management
  • Customized Risk Management Assessments (RMAs)

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