Is business personal property covered under a Businessowners policy?


Personal business property coverage is one of the major characteristics of a Businessowners policy (BOP) which is specifically designed for small and medium-sized businesses such as retailers, office buildings, etc.

What Business Personal Property is Covered by BOP

All personal property of the named insured, which is utilized for commercial purposes, is covered by a Businessowners policy. In addition, a BOP covers any betterments made by the tenants to the building of the insured, any property which the insured leases and which they have agreed to cover, and other people's property that happens to be in the custody of the insured.

A Businessowners policy has many assets. It provides an additional coverage for exterior building glass which is part of business personal property, provided that the named insured owns the glass or is in its care or custody, and that the insured is a tenant of the building in question.

Another characteristic of the business personal property portion of BOP, which cannot be found in other commercial property policies, is the so-called "peak season" provision. When the value of the insured business personal property soars, the peak season provision comes into effect, providing a temporary 25-percent rise in the insurance coverage amount.

Yet another favorable aspect of the BOP business personal property coverage is the automatic protection for business personal property at newly acquired premises, which it provides. This automatic coverage is valid for 30 days from the date when the change happens. The business personal property in a newly acquired location is insured for up to $100,000 until the named insured endorses the policy to cover the new premises. The same coverage limits apply to business personal property that is temporarily away from the premises specified in the policy declarations, or is in transit.

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