There are a number of small business property insurance policies available to protect your property, tools, and equipment. Here’s a quick summary of your options:
- Business Owner’s Policy (BOP) is a bundle for general risks.
- Business Personal Property (BPP) covers items at a fixed location.
- Contractor’s Small Tools and Equipment (a.k.a Inland Marine Insurance) protects tools and gear while they are in transit or at a job site.
But with so many options, how do you know the best one to choose?
In this guide, we’ll cut through the insurance jargon and show you how these different small business property insurance coverages work, so you can pick the right property protection with confidence.
Understanding Small Business Property Insurance Policies
Small business property insurance typically falls into four main coverage types:
- Business Owner’s Policy (BOP)
- Business Personal Property (BPP)
- Inland Marine (IM)
- Contractors’ Small Tools and Equipment
To simplify these options, start by sorting them into two buckets:
- Stationary: BOP and BPP are designed to protect your “stationary world” — your business location and its permanent contents.
- Mobile: Inland marine and contractor’s small tools and equipment protect your “mobile world” — the tools, equipment, and gear you take on the road.
Next, let’s take a closer look at each small business property coverage and the kind of property they’re built to protect.
What is a business owner’s policy and what does it cover?
A BOP is an “all-in-one” policy that typically bundles three types of small business insurance together for convenience and value:
What it covers: Damage to the building (if you own it) and stationary business contents. If your business is forced to close for a period of time for certain reasons, business interruption coverage also can help pay for lost income.
What it doesn’t cover: Tools, equipment, or other property that’s on the move.
Many small business owners choose a BOP because it offers broader protection than a stand-alone general liability or business personal property policy, often for just a little more in monthly premiums.
What does business personal property coverage include?
BPP is property coverage for the tangible items that live inside your business location. If your property stays mostly within your four walls, BPP might be a good fit.
What it covers: Furniture, fixtures, décor, computers, office equipment, inventory, and supplies. It also can cover tools and equipment kept at an insured location, such as a warehouse.
What it doesn’t cover: Property, tools, or equipment that regularly travel to jobsites or client locations.
A BOP often covers the structure around you, such as an office, shop, or store. So, if you rent your space, run a home-based business, or have minimal liability exposure, you might choose BPP coverage as a general liability add-on instead of a more comprehensive BOP.
What is Inland Marine Insurance? And What Type of Property Does It Cover?
Inland Marine is crucial coverage for equipment in transit or temporarily stored away from your main location. It often fills an overlooked gap for contractors, freelancers, and businesses with mobile equipment.
What it covers:
- Tools and equipment taken to jobs
- Gear carried in vehicles or trailers
- Equipment stored at a jobsite temporarily
- Specialized business property that moves around, such as photo or video gear and event equipment
What it doesn’t cover:
- The building or permanent structures at your business address
- Most stationary items at your main location
- Normal wear and tear
Inland Marine helps protect the property that travels with you, while coverages like BOP and BPP are designed to protect the property that stays put at your main business location.
What is contractor’s small tools and equipment and how does it differ from inland marine coverage?
Contractor’s small tools and equipment is essentially Inland Marine coverage written with contractors in mind. It’s designed to help protect the tools and equipment contractors take from job to job – not the items that stay at your shop or office.
What it covers:
- Jobsite tools and equipment
- Portable generators, saws, compressors
- Tools kept in a truck, van, or trailer
Small Business Property Insurance Coverage at a Glance
| Feature | BOP | BPP | IM, aka contractor’s small tools and equipment |
| What it typically covers | Damage to the building and stationary business contents | Equipment, inventory, and supplies inside the premises | Tools and equipment on the go |
| Location | Stationary: At the premises listed on the policy | Stationary: Inside the insured premises | Mobile: In transit or at jobsites |
| Commonly purchased by | Retail stores, restaurants, and professional services | Businesses that rent or lease their space or consultants who work from home | Contractors, mobile services, creatives with gear, or anyone with property in motion |
Which Policy is Right for You?
Now that you know what each policy covers, the next step is lining it up with how your business operates and where you may have exposure.
BOP for businesses that need a strong foundation.
Late one night, an electrical fault sparks a kitchen fire in your neighborhood restaurant. The damage is contained, but the cleanup is real — smoke, repairs, and equipment replacement. You’re closed for a few weeks, and the bills don’t stop just because the doors are locked.
Why a BOP fits:
- It can help cover damage to stationary business property such as kitchen equipment and furnishings.
- It may include business income coverage, which can help with lost income while you recover and reopen.
- It combines property coverage and general liability in one policy, so you’re not juggling separate policies for common risks.
BPP for inventory at a rented space.
You sell products online and you’ve outgrown your home setup, so you rent warehouse space for inventory and a small packing area. During a cold snap, a pipe bursts and water pours onto storage racks and packing stations. Your inventory is soaked and unsellable, shipping supplies are ruined, and a couple of workstations have shorted out.
Why BPP matters here:
If you don’t own the building, you may not need building coverage, but you absolutely need coverage for what you keep inside the building:
- Inventory and supplies
- Packing equipment
- Computers and basic office setup
In many leases, you’re responsible for your own contents. BPP can help you avoid the “I assumed I was covered” surprise that catches many renters off guard.
Inland marine for gear on location.
You run a small video production business and your camera kit, lenses, and audio gear travel with you to client shoots. During a conference at a hotel, you leave a backup camera bag in a side room, then you come back to find it gone.
How inland marine helps:
- It’s built to protect equipment that travels with you.
- It can cover theft or certain types of damage to gear at jobsites, in transit, or stored temporarily away from your office or studio.
- It closes a common gap where a BOP or BPP may not fully protect high-value mobile equipment.
For businesses that earn their income on the go, Inland Marine helps protect essential gear wherever the work takes you.
Contractor’s small tools and equipment for tools on the go.
When you run a small lawn care service, your equipment isn’t optional — it is the business. On a busy day, you park curbside to grab a quick lunch. When you come back outside, the trailer door is pried open and several high-value items are missing.
Where contractor’s small tools and equipment comes in:
- Covers the cost to replace tools and equipment if they’re stolen from a truck, trailer, or jobsite in a covered incident.
- Helps repair equipment that’s damaged while in transit or at a jobsite.
For contractors who rely on the gear they carry, contractor’s small tools and equipment helps keep the business moving, even when the unexpected happens.
How Simply Business Can Help
Figuring out the right property coverage can feel overwhelming — especially when you’re juggling different policies, costs, and fine print. That’s where Simply Business comes in.
By offering a wide range of insurance options, we help small business owners find coverage as unique as their businesses. And with our convenient online quote tool, you can have a quote ready in just a few minutes.
Got questions? Our licensed agents can help Monday through Friday: 8 a.m.-8 p.m. ET at 855-869-5183.
Property protection for your small business doesn’t have to be complicated. We make it simple.