As a business owner, protecting your assets is essential to maintaining smooth operations. A Business Owner’s Policy (BOP) is a comprehensive insurance package designed to safeguard your business from financial loss due to property damage, liability claims, and other risks. One of the key components of a BOP is property insurance, which covers physical assets essential to your business.
But what exactly falls under a business owner’s property policy? Let’s break it down.
1. Buildings and Structures
If you own a commercial property, your BOP will typically cover:
The main building where your business operates
Any additional structures on the property (e.g., storage buildings, garages)
Installed fixtures, such as lighting, plumbing, and built-in appliances
This coverage helps repair or replace your building in case of damage from fire, vandalism, theft, storms, and other covered events.
2. Business Personal Property (BPP)
Even if you don’t own your building (such as in a leased space), your BOP still protects your business personal property, including:
Furniture (desks, chairs, cabinets)
Equipment (printers, computers, industrial tools)
Inventory and stock
Office supplies
This coverage ensures that if an unexpected event damages your business assets, you can repair or replace them quickly.
3. Equipment and Machinery
For businesses that rely on specialized equipment, a BOP often includes coverage for:
Manufacturing and processing machines
HVAC systems
Commercial kitchen appliances
Construction tools
If equipment is damaged due to fire, vandalism, or certain mechanical breakdowns, your policy can help with repair or replacement costs.
4. Loss of Business Income
If property damage prevents your business from operating, a BOP can include business interruption insurance, which covers:
Lost income due to temporary closure
Ongoing expenses (rent, payroll, utilities)
Relocation costs if you need a temporary workspace
This ensures your business can stay afloat while repairs are being made.
5. Signage and Exterior Fixtures
Your business’s outdoor signs, fencing, and landscaping may also be covered under your property policy, depending on the policy details. If a storm damages your business signage, for example, your BOP could help pay for repairs or replacement.
6. Property of Others in Your Care
If your business stores, repairs, or handles customer or client property, a BOP may provide coverage for:
Items left in your care for servicing
Rented or leased equipment
Goods held on consignment
This ensures you’re not financially responsible if a covered event damages property that doesn’t belong to you.
7. Tenant Improvements and Betterments
If you lease your business space and have made upgrades—such as new flooring, lighting, or built-in shelving—your BOP can help cover these investments if they are damaged. Since tenants often customize rental spaces, this coverage ensures you don’t lose the value of those improvements.
What’s Typically NOT Covered?
While a business owner’s property policy is comprehensive, there are some exclusions, such as:
Flood and earthquake damage (requires separate policies)
Employee theft (covered under crime insurance)
Wear and tear or maintenance issues
Cyberattacks and data breaches (covered under cyber liability insurance)
Final Thoughts
A Business Owner’s Property Policy is a crucial safeguard for protecting your company’s physical assets from unexpected damage. Whether you own or lease your space, having the right coverage ensures that your business can recover quickly after a disaster.
To ensure you have the right level of protection, consult with our team who can tailor a policy to fit your business’s unique needs.
Need help finding the right coverage? Contact us today to get started!