When purchasing a business insurance policy, many business owners assume that all of their equipment and business property are automatically covered. Unfortunately, that’s not always the case.
One of the most common areas of confusion is the difference between Business Personal Property (BPP) coverage and Inland Marine coverage. While both protect your business’s physical property, they are designed for very different situations. Understanding the difference can help prevent costly coverage gaps when you need your insurance most.
What Is Business Personal Property (BPP)?
Business Personal Property coverage protects the items your business owns that are kept at your insured location.
This can include:
- Office furniture
- Computers and electronics
- Inventory
- Machinery and equipment used at your business location
- Shelving and fixtures
- Tools that are typically stored on-site
If these items are damaged by a covered cause of loss, such as a fire, windstorm, or theft, your Business Personal Property coverage can help pay to repair or replace them.
Think of BPP as protecting the property that stays at your business.
What Is Inland Marine Coverage?
Despite its name, Inland Marine insurance has nothing to do with boats or water.
Inland Marine coverage protects property that is mobile, transported between job sites, or regularly used away from your primary business location.
Examples include:
- Contractors’ tools
- Construction equipment
- Mobile equipment
- Cameras and photography equipment
- Medical equipment transported between locations
- Landscaping equipment
- Computers or equipment taken to client locations
- Valuable property stored temporarily at another location
If your equipment travels with you, there’s a good chance Inland Marine coverage should be part of your insurance program.
A Real-World Example
Imagine you’re a landscaping contractor. Your commercial property policy may cover your tools while they’re stored inside your shop overnight. However, if those same tools are stolen from your trailer at a job site or damaged while being transported, your Business Personal Property coverage may not provide adequate protection. An Inland Marine policy is designed for exactly these situations. The same concept applies to electricians, plumbers, HVAC contractors, photographers, surveyors, and many other businesses whose equipment is constantly on the move.
Why Both Coverages Matter
Many businesses benefit from having both Business Personal Property and Inland Marine coverage because they work together.
| Business Personal Property | Inland Marine |
|---|---|
| Covers property at your insured location | Covers property away from your insured location |
| Best for furniture, inventory, and office equipment | Best for mobile tools, equipment, and materials |
| Property generally stays in one place | Property regularly travels or moves between locations |
Having one does not automatically replace the need for the other.
Is Your Business Properly Covered?
Every business is different. A retail store may primarily need Business Personal Property coverage, while a contractor or service business often needs both Business Personal Property and Inland Marine coverage.
If your business owns equipment, tools, or valuable property that leaves your building, it’s worth reviewing your policy to make sure those items are protected wherever your work takes you.
Our team can help you identify potential coverage gaps and make sure your business has the protection it needs.
Have questions about your current coverage? Contact our office today for a policy review.
