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Many business owners get confused the moment they start looking at the difference between Inland Marine coverage and Business Personal Property coverage. To many company owners, they sound like the same thing.
There are actually lots of people who are confused each year by the subtle differences between these two policy types, so you are not alone. There are some critical differences between each kind of coverage, and knowing more about both policy types can be a big help when trying to understand what each policy does.
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.
This kind of policy covers these items if your business location is damaged by a fire or by a flood, or if theft or vandalism are the reason that you need to make a claim. You need this kind of coverage if someone breaks into your store and steals all your inventory, or if a fire breaks out in the kitchen of your restaurant and burns most of the back half of your business location to the ground.
You will use this kind of coverage to get back on your feet and back in the business of making money without significant delay.
It is key to understand that this coverage will only protect items that are at your business location, however. And this is where Inland Marine Insurance comes into play.
What is Inland Marine Insurance?
Despite the name of this policy, this is an insurance coverage that actually protects your tools and business equipment if you take these items with you to other locations, such as job sites. Many contractors and business owners actually travel all the time for work. You might have a work van that you take to construction sites where you work on electrical jobs, for example. If you work with this kind of business model in place, you need Inland Marine coverage.
Your Inland Marine coverage will protect your tools and equipment as well as property that you have stored on a job site for a period of time. It will also protect specialty items like cameras or medical devices that are not always located at your main base of operations.
As an example. If you are a photographer and you use your camera at wedding venues, Inland Marine coverage would protect your camera and your gear.
For many people, 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?
Many people make the mistake of thinking that their tools and gear are covered under a basic insurance policy that they have taken out for liability. This is never the case, and many people have to shut down their business after they have gear or items stolen or damaged, simply because they did not have the right insurance coverage.
Think about a bakery that needs to have access to a working kitchen at all times. BPP coverage will protect the bakery if there is a fire and the whole kitchen burns down. 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.
Even if you work both at a physical location and off-site, you can get the coverage that you need. You can have both a BPP 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 will 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, which means that both coverages can be as cheap as $500 a year. Inland Marine coverage is more specialized and often meant to cover more expensive items. This means that $250-$750 and up is more normal for this kind of policy.
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 thousand dollars a year for insurance.
You Can Trust 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 will never be left out in the cold when it comes to tools and equipment protection when you work with us. We can help you understand the differences between a BPP and an Inland Marine policy, and we can help you to afford the coverage that you need with bundling and other smart suggestions.
Reach out to us today to find out more about protecting your business essentials the smart way.
