How Business Property Insurance Protects Your Personal Assets

How Business Property Insurance Protects Your Personal Assets

As a business, it’s vital that you ensure that your equipment, physical location, and other assets are protected. After all, in the event of a problem, it will help against interruptions in daily operations and lend the brand or company more credibility. More importantly, it can also cover any potential financial losses and give peace of mind.

This is where business or commercial property insurance comes into play as it protects any rented or owned equipment, personal and building properties of your organization. Through this insurance policy, you can cover the costs associated with the replacement or repair of the following:

  • Personal assets located at the place of business
  • Equipment and tools for business operations
  • Inventory that’s stored at the warehouse or office
  • Furniture like tables, desks, and chairs
  • Computer systems and digital equipment
  • Valuable documents, such as accounts receivable
  • Outdoor landscaping

Business property insurance coverage

With business property insurance, you can ensure that your building, equipment and tools, and other pieces of property are protected from various claims, including but not necessarily limited to the following:

  • Theft of equipment or property
  • Lost income for those who are unable to operate due to property loss or damage
  • Fire damage

Is business property included in homeowners insurance?

The coverage for business property is different from homeowners insurance. It provides more coverage for the organization when compared to the standard and basic homeowners policies, which include very little if no coverage to business properties. If you’re running a home-based enterprise, a homeowners policy won’t protect the business’s technology, equipment or data.

Moreover, it won’t protect business property even if stored in different locations. So it’s worth considering a business property policy to ensure that your company gets the coverage it needs.

Does the BPO cover business property policies?

The business owner policy or BPO generally covers business property policies, combining the essential coverage types that companies require, such as:

  • Business income coverage
  • Commercial property coverage
  • General liability

Tangible and intangible properties

As their name implies, tangible properties are those that can be physically touched or seen. Some examples are computers, furniture, and automobiles. On the other hand, intangible assets are the opposite, including things like intellectual properties, patents, copyright, and digital assets.

Who requires business property coverage?

For a business to protect its assets, it needs to have at least business property, general liability, and P&C insurance. If your organization lacks any of these coverages, there’s a chance that you may have to shoulder out-of-pocket expenses for claims and damages and put yourself at financial risk as a result. Therefore, business property coverage is essential regardless of the size of your company and the industry you’re in.


There aren’t many things as important in business as business property coverage. Life is full of uncertainties, after all. While it’s impossible to prepare for every single one, you can keep risks at a minimum with the right insurance policies. So be sure to get the right coverage for your business.

Ayhan Fletcher

"Subtly charming zombie nerd. Infuriatingly humble thinker. Twitter enthusiast. Hardcore web junkie."

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