Written by: Lindsey Lessard Director of Client Services, Broker Representative for Alternative Balance
Your company’s business personal property (“BPP”) is a vital part of your operations. Whether you have a small online presence with only a laptop or you have a gym full of weight machines, it’s important to protect your business assets with BPP insurance.
1) It protects your assets from loss due to physical damage
Business Personal Property insurance, also commonly referred to as BPP insurance, covers the contents owned by your business in case of a physical loss or damage. It helps you recover the cost of repairs or replacement due to damage or loss from various perils, including fire, theft, vandalism, and more. It covers equipment your business owns, including things like gym equipment, office furniture, electronics, desks, etc. It does not cover the building brick and mortar, as that is typically the landlord’s responsibility. If you do own the building, you will need to have commercial property insurance.
2) It provides compensation for lost revenue
In many cases, a claim occurs when least expected and at the most inconvenient time. Two different supplemental property coverages, Business Income and Extra Expense, are incredibly beneficial in a situation where your business has to shut down due to a covered physical property loss.
- Business income coverage provides recovery of lost revenue if there is damage to your business property due to a covered loss that results in a slowdown or suspension of your operations.
- Extra expense coverage pays for additional costs in excess of normal operating expenses (such as rental equipment, rent, and payroll) that your business may incur in order to continue operations while your property is being repaired or replaced after damage due to a covered loss.
3) It provides protection against theft
Theft and burglary have become more prevalent over the last several years and can be significant threats to small businesses. Theft protection is important and can help offset the financial impact of your business property that has been stolen. If you’re not covered by an Alternative Balance plan, then be sure to check your policy for theft coverage, as theft can be excluded from a property policy. It’s important to make sure that your policy specifically includes this coverage.
4) It can fulfill a legal or contractual obligation
In some cases, your lease agreement or local regulations may require you to have coverage for your business property. It is important to comply with these requirements, since failure to comply could lead to penalties or eviction – above the loss you could experience if your business equipment was damaged or stolen. It is important to understand your landlord’s insurance requirements to ensure you are compliant with the lease, along with any local legal regulations.
5) It allows peace of mind
Knowing that your business property and assets are protected can provide peace of mind. That way, you can focus more of your time on growing your business. Insurance is there to protect your financial interests, and BPP coverage is no exception.
Alternative Balance Offers Broad and Competitive BPP Coverage
Business Personal Property coverage is automatically extended to all Alternative Balance members, with $10,000 Business Personal Property and $10,000 Business Income/Extra Expense included FREE on the AB membership*. If you need more coverage than that, AB also offers the following higher limits for an extra premium:
- $25,000 Business Personal Property and $25,000 Business Income/Extra Expense
- $50,000 Business Personal Property and $50,000 Business Income/Extra Expense
All property tiers have a low $500 deductible and the cost is the same nationwide. In addition, coverage is not restricted to any particular location – as long as the claim or loss occurs within the U.S., then coverage would extend to it.
Have questions or need help? Email us at [email protected] or call 800-871-3848 Monday-Friday 9am-5pm EST. We’re also here to chat LIVE on our website, alternativebalance.com.
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* Starting with policies effective 7/10/2023.