Business Personal Properties Covered
Commercial property policy insurance provide coverage for both the
building structures and personal property. The building coverage was
discussed in a different section here. Personal Property Coverage (for
business use) is discussed below.
Business Personal Property - When the policy covers personal property
(not real property) of a business, it applies to the following classes of
property located in the building described in the policy or in the open (or
on vehicles) within 100 feet of the building:
Stock – Stock is defined as merchandise held in storage or for sale, raw
materials and in-process or finished goods, including supplies used in
their packing and transportation;
Machinery, furniture, fixtures, and equipment;
All other personal property used by the insured in the business;
Labor, materials or services arranged/furnished by the insured on the
property of others;
The insured's use interest as tenant in betterments and improvements
which are defined as fixtures, improvements alterations, installations or
additions made a part of the building not owned by the insured which
were made at the insured's expense or acquired by him or her but which
the insured cannot legally remove.
Personal Property of Others - The policy also covers personal property
of others which is in the custody, care or control of the insured and
which is located in the building described in the policy or in the open
within 100 feet of the building. Payment for such shall be only for the
account of the owner of the property.
In most states, the policy now includes leased personal property for
which the insured has a contractual obligation to procure coverage.
This coverage is optional for the insured, who is required to request it
and pay an additional premium for the amount of insurance purchased.
Business Personal Property at Newly Acquired Locations - If the policy
contains a co-insurance clause of 80% or higher, it may be extended to
cover personal effects owned by the insured at any location acquired by
the insured except at fairs or exhibitions. This extension is subject to a
maximum limit of coverage at each building.
Personal Effects and Property of Others - If the policy is written with a
coinsurance clause of 80% or higher, it is extended to cover personal
property owned by the insured, officers of the insured's company, or
partners, or employees for any loss covered under the policy except for
theft. It also will cover personal property of others in the insured's
custody, care or control.
This coverage extension is subject to a maximum of $2,500 at each
location and is only for the account of the owner of the property.
Research Expense Extension - If the policy is written with a coinsurance
clause of 80%or higher, it can be extended to cover to a maximum of
$2,500 on the cost to replace, restore, or research lost information on
lost or damaged valuable papers and records, including those on
electronic or magnetic media, for which duplicates do not exist.
Property Off Premises - If the policy contains a coinsurance clause of
80% or higher, it is extended to cover property owned by the insured,
other than stock, that is temporarily at a location not owned, leased or
operated by the insured. This extension applies only if the loss is caused
by a cause of loss insured against in the policy (which depends on the
particular form under which the policy is written, as will be discussed).
This extension which is subject to a maximum limit of $10,000 does not
cover property on a vehicle at a fair or exhibition or in the care, custody
or control of sales people.
Property Not Covered
As was discussed before on building coverage under PROPERTY NOT
COVERED-Property Outside Buildings Exclusion, certain classes of
property are excluded under the Commercial Property policy. In addition
to those enumerated types of property, the policy also does not cover:
Automobiles held for sale;
Vehicles or self-propelled machines, including aircraft and watercraft
that are:
Commercial property policy insurance provide coverage for both the
building structures and personal property. The building coverage was
discussed in a different section here. Personal Property Coverage (for
business use) is discussed below.
Business Personal Property - When the policy covers personal property
(not real property) of a business, it applies to the following classes of
property located in the building described in the policy or in the open (or
on vehicles) within 100 feet of the building:
Stock – Stock is defined as merchandise held in storage or for sale, raw
materials and in-process or finished goods, including supplies used in
their packing and transportation;
Machinery, furniture, fixtures, and equipment;
All other personal property used by the insured in the business;
Labor, materials or services arranged/furnished by the insured on the
property of others;
The insured's use interest as tenant in betterments and improvements
which are defined as fixtures, improvements alterations, installations or
additions made a part of the building not owned by the insured which
were made at the insured's expense or acquired by him or her but which
the insured cannot legally remove.
Personal Property of Others - The policy also covers personal property
of others which is in the custody, care or control of the insured and
which is located in the building described in the policy or in the open
within 100 feet of the building. Payment for such shall be only for the
account of the owner of the property.
In most states, the policy now includes leased personal property for
which the insured has a contractual obligation to procure coverage.
This coverage is optional for the insured, who is required to request it
and pay an additional premium for the amount of insurance purchased.
Business Personal Property at Newly Acquired Locations - If the policy
contains a co-insurance clause of 80% or higher, it may be extended to
cover personal effects owned by the insured at any location acquired by
the insured except at fairs or exhibitions. This extension is subject to a
maximum limit of coverage at each building.
Personal Effects and Property of Others - If the policy is written with a
coinsurance clause of 80% or higher, it is extended to cover personal
property owned by the insured, officers of the insured's company, or
partners, or employees for any loss covered under the policy except for
theft. It also will cover personal property of others in the insured's
custody, care or control.
This coverage extension is subject to a maximum of $2,500 at each
location and is only for the account of the owner of the property.
Research Expense Extension - If the policy is written with a coinsurance
clause of 80%or higher, it can be extended to cover to a maximum of
$2,500 on the cost to replace, restore, or research lost information on
lost or damaged valuable papers and records, including those on
electronic or magnetic media, for which duplicates do not exist.
Property Off Premises - If the policy contains a coinsurance clause of
80% or higher, it is extended to cover property owned by the insured,
other than stock, that is temporarily at a location not owned, leased or
operated by the insured. This extension applies only if the loss is caused
by a cause of loss insured against in the policy (which depends on the
particular form under which the policy is written, as will be discussed).
This extension which is subject to a maximum limit of $10,000 does not
cover property on a vehicle at a fair or exhibition or in the care, custody
or control of sales people.
Property Not Covered
As was discussed before on building coverage under PROPERTY NOT
COVERED-Property Outside Buildings Exclusion, certain classes of
property are excluded under the Commercial Property policy. In addition
to those enumerated types of property, the policy also does not cover:
Automobiles held for sale;
Vehicles or self-propelled machines, including aircraft and watercraft
that are:
 | licensed for use on public roads; or | |
| are operated principally away from the premises described in the | |
| policy; | ||
| not manufactured, processed, or held for sale. An exception is | |
| made for rowboats or canoes out of the water at the described premises; | ||
| grain, hay, straw or crops outside buildings. | |
 |  |  |  |  |  |
MY Insurance Agency
The materials on this page is meant to be
informative in nature. Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.
informative in nature. Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.