Article Reviewed by a licensed insurance professional: Sam Meenasian (CA dept of insurance license #0F75955).
Estimated reading time: 5 minutes
Key Takeaways
- Business Personal Property (BPP) insurance covers tangible assets at a fixed location, while Inland Marine insurance protects equipment during transit or at temporary sites.
- BPP includes items like furniture and inventory, whereas Inland Marine covers tools and portable gear.
- BPP is ideal for static businesses like offices, while Inland Marine suits contractors and mobile professionals.
- Many assume general liability covers tools, but it doesn’t; thus, having both BPP and Inland Marine may offer comprehensive protection.
- Costs for both coverages vary based on industry and gear; however, insuring tools is always cheaper than replacing them after loss.
Many business owners get confused the moment they start looking at the difference between Inland Marine and Business Personal Property coverage. For many company owners, it may sound the same.
Let’s take a look at the differences between BPP and Inland Marine Insurance that you need to know about before you start seeking the coverage that you need for your business assets.
What is Business Personal Property Insurance (BPP)?
Business property insurance covers all the stuff that your business owns. These are the tangible items that you need to make your business run, such as chairs, computers, inventory, and even things like the coffee maker in the break room.
There are two types of Business Owners policies (Basic Causes of Loss and Special Causes of Loss), Basic Causes of Loss polices usually exclude theft coverage (limited building damage from break‑in/out may be covered depending on your policy type, wording and endorsements requested), Special Causes of Loss policies usually cover damages caused by fire, water, theft and or vandalism.
Many BOP forms may include limited off‑premises coverage (often with a sublimit). For example, an ISO BOP overview describes “Personal Property Off Premises” coverage (with a stated sublimit and options for higher limits).
What is Inland Marine Insurance?
Despite the name of this policy, this coverage helps protect your tools and equipment while they are in transit or at a temporary location. Many contractors and business owners travel from one location to another with their tools and equipment.
As an example. If you are an excavating contractor and use your excavator in different locations, then consider an inland marine policy. You may cover your heavy equipment (heavy equipment usually scheduled by insurance carrier under scheduled property) and small tools with your inland marine policy.
For many business owners, the specialty equipment that they take with them from place to place is just as important as their own ingenuity and skill. An Inland Marine policy is the extra layer of protection that is critical to keep these expensive and important items safe and secure.
Let’s Take a Look at the Differences Between These Policies
| Feature | BPP Insurance | Inland Marine Insurance |
| Covers Where? | Only at your actual physical business location | Anywhere you work, items in transit, items in temporary storage |
| Ideal For | Offices, salons, restaurants | Contractors, freelancers, mobile service pros |
| What’s Covered? | Furniture, inventory, fixtures | Tools, portable gear, mobile tech |
| Policy Flexibility | More standardized | Highly customizable |
Why Does This Matter to You?
Business owners might think that their tools and gear are covered under their general liability policy, but this is never the case; general liability does not include any tools or equipment coverage.
Think about a bakery that needs to have access to a working kitchen at all times. BPP may protect the bakery and BPP when a fire starts. Imagine also a wedding photographer who has tons of expensive camera gear. These cameras are stolen the week before a huge wedding booking, but Inland Marine coverage allows them to go right out and get new gear before the important job. Photography equipment is usually scheduled with the carrier.
Even if you work both at a physical location and off-site, you could still get the coverage that you need. You could have both a BOP and an Inland Marine policy to protect your business, making it easy to cover yourself from all possible bad scenarios.
Is One Type of Coverage Cheaper Than the Other?
As with many kinds of business insurance policies, the cost of your coverage may vary depending on the kind of gear you own, the industry you work in, and where you work. You need to seek an accurate quote from your insurance provider of choice to be sure about your monthly costs.
BPP insurance is often bundled with a BOP policy; pricing varies widely based on industry, limits, location, security, loss history, and what’s scheduled/covered.
Remember that the cost of insurance is always cheaper than the cost of having to replace all of your business gear and supplies. Operating a business without the proper insurance coverage is never, ever smart.
You should never wait for something to go wrong before you decide that insurance coverage is useful to your company. Having to replace $15,000 in tools is always far more costly than paying a few hundred dollars a year for insurance.
You Can Rely on USA Business Insurance
When it comes to getting the best business insurance coverage for your company, you can count on the team at USA Business Insurance. You should never be left out in the cold when it comes to tools and equipment protection. We could help you understand the differences between a BPP and an Inland marine policy and offer you affordable coverage you may need.
Reach out to us today to find out more about protecting your business essentials the smart way.
