What Is Business Personal Property Insurance?

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Key Takeaways

Business personal property insurance helps cover the cost to repair or replace your company-owned equipment, tools, inventory and other physical property if they’re damaged or stolen due to a covered event like fire, wind or theft.
Homeowners insurance usually doesn’t cover business property, which is why business personal property insurance is especially important for home-based small business owners.
Many small businesses choose a Business Owner’s Policy (BOP) because it bundles business property coverage with liability and business income protection into one policy.

What Does Business Personal Property Insurance Cover?

Business personal property coverage, also called commercial property insurance, is a type of business insurance that can help protect the physical items your business relies on. It may also help cover losses caused by common risks, such as:

Fire damage to your property
Theft of property or equipment
Lost income if you can’t operate temporarily because of covered property damage

BPP coverage can help cover the costs to repair or replace business-owned items like:

Personal property located at your business
Tools and business equipment you use to operate
Inventory stored at your office or warehouse
Furniture, such as couches, desks, chairs and tables
Computers you use to run your business
Accounts receivable and other valuable documents
Outdoor hardscaping, like fences

For home-based businesses, BPP in insurance terms plays a key role in protecting your company’s property that homeowners insurance often doesn’t cover.

small business owner protected by business personal property insurance coverage

Does Homeowners Insurance Protect Business Personal Property?

Business personal property coverage is different than homeowners insurance. While homeowners policies are designed to protect personal belongings, they typically offer limited or no coverage for business property.

If you run a home-based business, your homeowners policy doesn’t protect business-owned equipment, technology or files, especially if they’re stored off-site. That’s why business personal property insurance can help ensure your business assets are properly covered.

Business Personal Property vs. Business Owner’s Policy (BOP)

Understanding the BPP insurance meaning starts with knowing how it fits into a broader business insurance policy. Business personal property coverage is included as part of a Business Owner’s Policy (BOP), which is a bundled policy designed to help protect many of the key risks small businesses face.

A BOP from The Hartford combines three essential coverages:

General liability insurance
Commercial property insurance
Business income insurance

This table outlines how business personal property (BPP) coverage compares to a BOP.

Feature	BPP (Business Personal Property)	BOP (Business Owner’s Policy)
What is it?	A type of commercial property coverage	A bundled business insurance policy
Covers business items?	Yes — equipment, computers, inventory, furniture and other business owned property	Yes — as part of the commercial property coverage
Covers liability claims?	No	Yes — through general liability insurance
Covers lost income?	No	Yes — through business income insurance
Best for:	Protecting specific business owned property	Small businesses looking for well-rounded coverage

What Is the Difference Between Tangible and Intangible Personal Property?

Tangible personal property is an item you can see or touch. Intangible personal property includes concepts and business assets your business owns or rents that aren’t objects.

Tangible Property	Intangible Property
Computers and electronics	Patents and copyrights
Furniture	Intellectual property rights
Office supplies	Investments
Cars	Partnership contracts
Tools	Digital assets

Who Might Need Business Property Insurance?

Any business that relies on tools, equipment, inventory or a physical workspace may need business property insurance to help protect those assets.

At a minimum, you need property and casualty insurance to help protect your business. So, you’ll want to get business personal property insurance along with professional liability insurance. Without these coverages, you may have to pay claims and damages out of pocket, which could put you and your business at financial risk.

No matter what industry you’re in, business and property insurance can help protect your company. Here are just a few of the industries we cover:

business owner happy knowing bpp insurance meaning

The Value of Small Business Property Insurance

Running a small business takes time, effort and investment. Small business property insurance can help protect what you’ve worked hard to build. It can help cover the cost to fix or replace damaged or destroyed property. Without it, property damage could lead to costly out‑of‑pocket expenses and potential downtime for your business.

Business Personal Property Insurance From The Hartford

With over 200 years of insurance experience, we understand the unique challenges small business owners face. Our dedicated small business insurance team can help if you’re looking for an insurance quote, need a business personal property insurance policy or are wondering what other types of coverages you might need to fit your specific business.

Get a business insurance quote today to find out your business personal property insurance cost and see how we can help protect your company.

Frequently Asked Questions About Business Personal Property Insurance

What Is BPP Insurance Coverage?

Based on the business personal property definition, BPP insurance coverage helps protect business‑owned items, like equipment, tools and inventory, if they’re damaged or stolen due to a covered event.

How Much Business Personal Property Insurance Might I Need?

The right amount of coverage for your business depends on the value of the property you own and use to operate, such as your tools, equipment, inventory, furniture and technology. To choose the right amount of business personal property insurance, consider what it would cost to repair or replace those items after a covered loss. You should also consider other factors like your industry, location and how your business operates.

Does BPP Coverage Protect My Business From Natural Disasters?

Business personal property (BPP) coverage may help protect your business owned property from damage caused by certain natural events, like fire or wind. Coverage depends on the terms of your policy and what caused the loss. Some events, such as floods or earthquakes, are typically excluded and may require separate coverage. Reviewing how hazard insurance works can help you better understand which types of events may or may not be covered.

Does Business Insurance Cover Medical Expenses?

Yes, but it depends on the coverage you have. A Business Owner’s Policy (BOP) includes general liability insurance, which can help pay for medical expenses if a customer or third-party is injured at your business or because of your operations. However, a BOP doesn’t cover injuries to your employees. Medical expenses for work-related injuries or illnesses are typically covered under workers’ compensation insurance. Workers’ comp coverage is typically required for businesses that have employees.