You’ve probably heard of personal property before, but business personal property? While it sounds like a concept that blurs the lines between home and business, it’s actually much simpler than that. To show you, we’ll break down the basics of this important insurance concept today!
It is Personal? Or for Business?
If you’re the business owner, then it’s a little bit of both. Basically, it’s all the stuff that a business requires beside commercial land and building(s). If you can move it, and you use it for your business, then it probably falls into this category. Think of all of the items inside of your office building. Everything from computers to desks and chairs. Or even your inventory! We want to make sure you have coverage for these items, along with the structure itself.
But this concept also includes intangible property. Including items like bonds, securities, and other investments. Along with your intellectual property, such as patents or copyrights. Because these items can be bought, sold, and theoretically damaged, we want to help you protect them, too!
Keep Track of Everything
When it comes to business personal property, it’s especially important to keep good records. Apart from having sufficient insurance to replace these items if/when something happens, there are also other financial implications to consider. Like taxation. These items, depending upon their value, could be taxable or deductible. Either way, you’ll want to maintain records of all expenses associated with them, from the initial purchase to continuing maintenance. Then, you’ll have something to show trusted advisors/accountants who can help you decide how best to handle them.
What about Listed Property?
This is the category that tends to blur the lines between business and personal items, since it deals with items that can be used as both! This category has definitely shrunk over the years, at least by regulatory standards. So, only items like vehicles (under a certain size), other transportation methods, and some recreation equipment (like cameras, speakers, etc.) can be officially “listed.” Other pieces of property that often pull double duty, like laptops, tablets, and cell phones are specifically excluded from this category.
Largely, listed property is important for tax implications, but we also want to consider it for insurance reasons. If you get into an accident on your way to an after-hours event, but you’re in a vehicle that pulls double duty—how is it protected? Well, in that case, we’d recommend a policy as versatile as your needs. But we prefer a personal approach to ensure you have coverage that works for you.
As Freedom Insurance Agency, we work to protect your home and your business—and everything in between. Ask us about your business personal property, so we can build a policy with personalized limits in place. We can even work within the gray area of listed property to ensure you won’t have to worry about coverage. You’ll just know who to call if something happens!