Business Property Insurance

Contents Coverage - BPP

• Covers the contents inside your building, such as furniture, inventory, equipment, and supplies.
• You can opt for "Replacement Cost" coverage (pays for new items) or "Actual Cash Value" (which factors in depreciation).

Important Considerations:

Inventory Coverage: Businesses with significant stock, such as retail stores or warehouses, need specific coverage for inventory. You can choose a policy that covers the actual cash value (depreciated value) or replacement cost (cost to replace with new items).

Inventory exclusions that matter most to a retailer or wholesaler:

• Flood (needs separate flood policy)
• Earthquake (often excluded without dedicated coverage)
• Gradual or long‑term water damage
• Temperature changes not caused by a covered peril

• Seasonal Variations: Some policies offer "peak season" coverage, which increases the amount of coverage during times when inventory levels are higher than usual, such as holidays for retail businesses.
• Off-Premises Coverage: If you frequently move property between locations, you might need coverage for business property in transit.
  
  Actual coverage depends on policy terms and underwriting

Equipment Breakdown Coverage

• Covers the repair or replacement of essential business equipment that may break down unexpectedly. (e.g., motor burnout, electrical arcing, boiler failure). It does not cover all “unexpected” failures, and specifically excludes normal wear and tear/maintenance issues and often other causes

Important Considerations:

• This is different from standard wear and tear or maintenance issues, which are typically excluded.
• This coverage can also apply to the spoilage of goods, like refrigerated items that spoil due to equipment failure.