What Is Business Personal Property Insurance? (BPP Insurance)

When you run a business in Michigan, protecting your assets isn’t just about insuring the building you operate out of. The equipment, furniture, computers, and inventory inside your space often represent just as much—if not more—value. That’s where Business Personal Property Insurance (BPP Insurance) comes in.

In this post, we’ll break down what BPP covers, how it differs from other types of commercial property coverage, how coverage limits are determined, and what exclusions and additional policies you should be aware of.

What Is Business Personal Property Insurance?

Business Personal Property Insurance (BPP) protects the physical items your business owns that aren’t part of the actual building structure. These include:

Furniture and office fixtures
Computers and electronics
Machinery and equipment
Raw materials
Finished goods and inventory

Essentially, if it helps your business operate day-to-day but isn’t part of the walls, roof, or flooring, it likely falls under BPP.

How BPP Differs From Building Coverage

A common source of confusion is how BPP differs from Building Coverage. Here’s a quick breakdown:

Building Coverage: Protects the structure itself—walls, roof, flooring, and permanently attached fixtures.
Business Personal Property: Covers the movable or interior property your business owns—even large machinery inside a facility, if it’s not part of the building’s structure.

Together, these two coverages provide a more complete picture of protection.

Coverage Limits: Replacement Cost vs. Actual Cash Value

When setting up your policy, it’s important to carefully value your business property. You’ll typically choose between:

Replacement Cost (RC): Covers the cost of replacing items with new equivalents, without deducting for depreciation.
Actual Cash Value (ACV): Covers the value of items at the time of loss, factoring in depreciation.

Most businesses prefer replacement cost to avoid receiving less than what’s needed to fully replace critical assets.

Common Exclusions in BPP Policies

Like any insurance policy, BPP comes with exclusions. Some common ones include:

Property not owned by your business (but in your possession)
Losses from floods or earthquakes (typically excluded unless you buy additional coverage)
Certain types of perils not covered under a standard policy

Understanding these exclusions up front helps prevent costly surprises when you need coverage most.

How Inland Marine Insurance Fits In

While BPP covers property kept at your main business location, Inland Marine Insurance steps in when property moves around. For example:

Tools or equipment transported to job sites
Inventory shipped between locations
Property in transit or stored offsite

If your business frequently moves equipment or goods, Inland Marine Insurance works alongside BPP to create a complete protection plan.

Why BPP Insurance Matters for Michigan Businesses

Whether you operate a retail store in Detroit, a manufacturing facility in Grand Rapids, or a small office in Lansing, business personal property is important to your operations.

Without adequate coverage, a fire, theft, or other unexpected event could halt operations and create significant financial strain.

Pairing Business Personal Property Insurance with building coverage, Inland Marine, and other relevant policies ensures you have a comprehensive safety net.

Final Thoughts

Business Personal Property Insurance is a cornerstone of a solid commercial insurance program. It’s not enough to protect the building—you also need to safeguard the tools, equipment, and inventory that keep your business running.

If you’re unsure how much coverage your business needs or whether replacement cost or actual cash value is the best fit, speaking with a trusted commercial insurance agent is the best next step.

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