business property insurance

Business property insurance protects businesses against losses from accidental damage to their property. A common policy, the "building and personal property coverage form" (BPP), can cover buildings, equipment, and business-related personal property. It can also extend to newly acquired property, valuable papers, and outdoor items like fences and signs.1

Coverage can be on a scheduled basis, insuring specific items, or a blanket basis, covering property at multiple locations for a single sum. Policies list covered perils, or offer "all-risk" coverage with specified exclusions. Losses are typically settled based on actual cash value, accounting for depreciation, though replacement-cost coverage can be added. Some policies offer monthly reporting for fluctuating values, ensuring businesses only pay for needed coverage. Indirect losses, such as business income interruption, are usually covered under separate contracts. Excluded perils often include events like flood, earth movement, war, and neglect.1234