If you own a business, you likely have many personal possessions on-site—everything from the pens and paper in your office to the tables and chairs your customers sit at when they visit your shop. If you own a retail store, you may even have some valuable merchandise on the shelves, such as jewelry or clothing that can be easily walked out of the store.
What happens if you experience a break-in? If someone slips and falls in your store? If there’s an earthquake or other natural disaster? All these situations can technically be covered with a business’s personal property insurance.
Types of coverages
Business personal property insurance, or BPP, protects the physical belongings of your business, like furniture, inventory, and tools. It can also cover lost income if your business has to close temporarily due to damage from a covered event. There are two main types of coverages: replacement cost and actual cash value.
Replacement costs cover replacing your damaged property with new property of the same kind and quality. Actual cash value takes depreciation into account and pays you the replacement cost minus depreciation.
Choosing a personal property insurance insurer
When choosing a personal property insurer for your business, you want to ensure they’re reputable and have a good track record. You also want to ensure they offer the coverage you need at a price you can afford. Here are a few things to keep in mind when choosing an insurer for your business:
Rates:
Business personal property insurance rates will vary depending on the value of your inventory, your deductible, and how much coverage you need. Your deductible is the amount you’ll have to pay out of pocket before your insurance kicks in, and your policy limit is the maximum amount your insurer will pay. Make sure you understand the policies before purchasing them.
Service:
Your insurance provider should be helpful and answer all your queries. You can get a feel about their service from their interaction with other customers. Most insurance providers also have reviews posted on the internet; it is also a good idea to check them out.
Financial Solidity:
You are getting insurance to protect your finances, so choosing a company that is itself in muddy water would not be helpful. Instead, select a company with a good track record and sound finances for at least the last few years.
Should I get business personal property insurance?
It depends on your specific business needs. Small businesses with many personal belongings lying around the store or office complex may consider opting for business personal property insurance. However, the price of the belongings should also be considered. If you do not think the personal items are worth a lot, you may skip getting the insurance.
Final words
Insurance is a great way to protect your finances and help you cover any loss you incur. However, your business insurance will not protect you from personal loss, so getting business personal property insurance on top of your existing business insurance plan will help ensure maximum coverage.