What is Business Personal Property Insurance?

Posted on Dec 28, 2016


Owning a business is a big investment. It takes a lot of hard work, time, and money to get a business off the ground and running. It takes even more of all three combined with some degree of luck to make your business grow. It’s important to protect the investments of time, energy, money, and heart into your business by making sure you have the right kind and amount of insurance coverage.

Business Property Insurance vs. Business Personal Property Insurance

One of the primary insurance coverage types you need to have for your company is business personal property insurance. Many business owners focus on the need for covering the building itself, but give little thought to the personal property of the business.

Unlike building insurance, which covers the physical structure of your building, business personal property covers the many essentials businesses own like furniture, tools, equipment, cash registers, fixtures, art, and inventory.

What’s the Big Deal about Business Personal Property Coverage?

You need to determine the value of the personal property of the business so that you can make sure you have adequate coverage to survive a total loss. Not having a proper amount of coverage leaves your business on the hook to replace these things – many of which are essential for operating the business – out of pocket. The thing about insurance is that it is designed to protect businesses against catastrophic losses when bad things happen.

If you have leased equipment like copiers or other machinery, the leasing company will require you to insure them during the term of the lease and will want you to provide proof that you have done so. The same applies when you have financed those items.

But remember that business personal property lost or damaged by flood is not covered under a property policy but under a separate flood insurance policy.

Cutting Costs of Business Personal Property Coverage

In addition to various tools used to keep your insurance coverage costs lower, bundling policies, selecting a higher deductible, and choosing property locations with care so that there are fewer location-based risks for things like vandalism, there are other important things you can do to help cut business personal property coverage costs. Here are a few things that all businesses today should consider doing if they are interested in reducing insurance costs:

  • Upgrade security. Install a security system or switch to one that is monitored to enjoy bigger savings on insurance costs.
  • Install a fire suppression system.  Insurance is an industry that is all about risks. The more steps you take to minimize their exposure to risk the more they reward you by offering lower rates.
  • Update electrical systems.  New wiring for your business can reduce fire hazards and reduce the risks of power surges that can damage office equipment and delicate electronics – reducing risk and lowering your costs.
  • Secure Your perimeter. This includes installing gates, improving exterior lighting, eliminating visual barriers that provide hiding spaces for vandals and thieves, and moving inventory that is stored outside to secured locations rather than leaving them exposed and at risk.

Changes like these can make a world of difference in your insurance costs and provide you with the protection your business needs and deserves.

Talk to us here at Otterstedt Insurance Agency today by calling 201-227-1800 or complete our online form to discuss your needs for business personal property insurance and to make sure you have the coverage that meets them best. With more than 100 years of experience serving the needs of New Jersey businesses and beyond, we have the knowledge and experience to help you find the right balance of coverage and costs.

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