Business Personal Property (BPP)
What Is Business Personal Property (BPP) Insurance?
Business Personal Property (BPP) is insurance for your business-owned stuff, like massage tables, wax pots, carts, stools, linens, small electronics, and retail stock. If a covered risk, such as fire or accidental damage, compromises your gear, BPP helps you repair or replace it.
Why it Matters for Beauty and Bodywork Professionals
- Your income relies on your tools: BPP helps you bounce back fast after a loss
- Contractual obligations: Suites and landlords often expect you to insure your own equipment
- Personalized protection: Choose coverage limits that fit your gear and budget needs
What Does BPP Typically Cover?
Most BPP policies apply to business equipment, gear, supplies, and retail items while they’re at your insured location. Some policies may extend to off-premises or in-transit equipment with a separate endorsement known as inland marine insurance.
Types of equipment typically covered by BPP include:
- Furniture and fixtures: Massage tables, treatment chairs, cabinets, mirrors, and similar items
- Devices and tools: Facial steamers, hot stone warmers, LED/high-frequency units, wax pots, nail tools, clippers, dryers
- Supplies and stock: Lotions, wax, polishes, lashes, other retail products
- Small electronics: Tablets, phones, and other devices used for bookings or payments
What Does BPP Not Cover?
Business personal property coverage typically does not apply to:
- Wear and tear and mechanical breakdowns, unless specifically endorsed
- Personal items not owned by the business
- Cash, accounts, or intangibles (valuable non-physical items, like your business’s intellectual property)
- Flood or earthquake-related damage (these are typically covered with separate policies)
- Off-premises losses unless your policy specifically includes that extension of coverage
Does My Base Policy Cover Equipment by Default?
Typically, no. A base liability policy protects you against injury and property damage claims from others, not your own property.
To insure large equipment and other business gear, you may need to add BPP coverage to your policy. You may also buy a Business Owners Policy (BOP) that includes property coverage.
If you’re a mobile business or travel with your gear, you’ll need inland marine or tools and equipment coverage.
How Payouts Work in BPP: ACV vs. RCV + Deductible
BPP claims generally pay using one of two valuation methods: Actual Cash Value (ACV) or Replacement Cost Value (RCV).
Swipe →
| Valuation | What You’re Paid | When It’s Useful |
|---|---|---|
|
ACV (Actual Cash Value) |
The item’s current market value, or current replacement cost minus depreciation |
You need a lower premium |
|
RCV (Replacement Cost Value) |
New item at today’s price (often paid after you replace the item) |
For faster recovery on critical tools |
Deductible: Typically subtracted from the covered amount on each claim.
ACV Example:
- A new, comparable massage table price today: $800
- ACV depreciation of 40% = $320
- Policy deductible = $250
- Insurer pays: $800 – $320 – $250 = $230
RCV Example:
- A new, comparable massage table price today: $800
- Policy deductible = $250
- Insurer pays: $800 – $250 deductible = $550
The actual final amount paid by an RCV policy may also be subject to additional policy terms and proof of replacement.
Related Terms
- Base Policy
- BOP
- Inland Marine/Tools & Equipment
- ACV
- RCV
- Deductible
- Per-Occurrence Limit
- Aggregate Limit
- Certificate of Insurance (COI).
