Content insurance is coverage for business personal property. There are two types of property in insurance lingo: real and personal. Real property is land, buildings and structures that are attached, such as fences or bridges. Business personal property is any other kind of property, including furniture, computers, inventory, equipment, machinery and anything you can move in and out of the building. Your small business needs insurance coverage of personal property, whether or not you own your place of business.
Even if you rent a building for your business, you may need building and content coverage for property of others left in your care. For instance, if you run a dry cleaning establishment, your customers leave their clothing in your care. Coverage is also vital for property kept at a secondary location, such as inventory stored at a warehouse or equipment stored in a nearby garage. The owner normally insures the building, but not its contents, and most commercial leases consider any additions or alterations you install to be a permanent part of the structure, so you might need some building coverage to cover the cost of any improvements you make.
A Business Owners Policy combines most of the coverage your small business needs into one stand-alone policy that automatically covers buildings and personal property, while also providing coverage for business interruption and contingency business losses. This standard policy includes additional coverage that you may not need and don’t get charged for. The standard Commercial Property Policy package with a Building and Personal Property Coverage form is an alternative that you can customize to meet your unique needs.
For example, your business may need special coverage for certain types of property or against certain causes of loss. Standard property insurance policies limit coverage for high-value items like jewellery and fine arts, so you may need a special type of insurance, called an inland marine policy, if you have these items in stock. Your business may also need commercial crime insurance or a fidelity bond, since standard policies generally don’t cover losses due to theft or employee dishonesty. These individual policies can be assembled to form your Commercial Property Policy. A commercial broker that understands your business and your risks is the best source for obtaining the coverage you need for your contents and for making sure you’re not discontent after a loss.