This is coverage for the commercial building and the business personal property that is located on the premises. Commercial property coverage is for the building itself, (if owned by insured or required by lease agreement). The coverage is also for insured’s property at the premises such as furniture, computers, accessories, equipment, inventory, etc.
Building coverage is usually set for full replacement of the building with modern construction practices. There is usually an allowance for code up dates if needed during building repairs/replacement.
BPP (Business Personal Property) can be furniture, computers, machinery, inventory, etc. Different businesses have various needs in covering items such as inventory. Most policies are set to cover the ‘average’ amount of inventory that a business will have on hand. What happens IF you have a surplus such as Christmas season and a fire occurs? Will your policy cover all that excess inventory property?
Commercial Property policies are typically a named peril policy, which means that not everything and anything is covered. Make sure you talk over any loss potentials that you may have that other “typical” businesses may not? Example, print shop not only has potential loss of paper inventory but loss of property of others that could cause hardship to the other business if a loss occurs. A mortgage company could have potential loss of personal information (SS#s, DOB’s, etc.) of its clients is stolen in a theft by physical break-in or computer hacking, causing potentially serious consequences for its clients, not just its own office.
There are many, many endorsements that are available to help cater a policy to cover your business to the highest potential available.
Most all cover options under Commercial property incur a deductible.
Ex: $100,000 dollars of coverage is posted on the policy with an 80% coverage constant. A fire occurs and it is determined that the equipment, inventory, furniture and computers are on premises were brought in for some additional sales needs.