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Business and Personal Property Coverage Form (BPPCF): Understanding, Coverage, and Examples

Last updated 03/19/2024 by

Silas Bamigbola

Edited by

Fact checked by

The business and personal property coverage form (BPPCF) is a crucial aspect of commercial insurance policies, providing protection against accidental damage to owned buildings, owned business personal property, and non-owned business personal property. This comprehensive guide delves into the intricacies of BPPCF, its coverage options, endorsements, and its role within the simplified commercial lines portfolio (SCLP) policy.

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Introduction to business and personal property coverage form (BPPCF)

Business and personal property coverage form (BPPCF) is a fundamental component of commercial insurance policies, offering essential protection against unforeseen damages to various types of properties. Understanding the intricacies of BPPCF is crucial for businesses to ensure adequate coverage and protection against potential risks. In this comprehensive guide, we will explore the key aspects of BPPCF, including its coverage, endorsements, and its role within the broader context of commercial insurance policies.

Understanding business and personal property coverage form (BPPCF)

Coverage overview

The BPPCF provides insurance coverage for owned buildings, owned business personal property, and non-owned business personal property. Owned buildings encompass structures declared in the policy, along with permanent fixtures and improvements. Owned business personal property includes assets owned by the insured, while non-owned business personal property includes improvements made by the insured to leased properties and personal property belonging to others but in the custody of the insured.

Coverage against perils

Most BPPCF policies offer coverage against various categories of perils, including basic causes of loss, broad causes of loss, and special causes of loss. While BPPCF typically covers a wide range of perils, certain exclusions may apply, such as flood, war, wear, and earthquake. These exclusions can vary depending on the specific terms and conditions outlined in the policy.

Expansion through endorsements

BPPCF coverage can be expanded through endorsements, which allow businesses to customize their insurance policies based on their unique needs and risk exposures. Endorsements may include coverage for additional perils like earthquake and radioactive contamination, as well as extensions for personal effects, papers and records, and off-premises property not owned by the insured. Furthermore, endorsements can increase coverage limits for outdoor property, trees, and other specified items.

The role of BPPCF in simplified commercial lines portfolio (SCLP) policy

The BPPCF is a crucial component of the simplified commercial lines portfolio (SCLP) policy, which provides comprehensive coverage for businesses against various risks and liabilities. Along with BPPCF, an SCLP policy typically includes three other parts:

Crime coverage

Crime coverage protects businesses against financial losses resulting from criminal activities such as forgery, fraud, theft, and employee dishonesty. This coverage is essential for mitigating the financial impact of unlawful acts perpetrated against the insured business.

Boiler and machinery coverage

Boiler and machinery coverage insures businesses against losses caused by the breakdown of equipment and machinery, including electrical, pressure, refrigeration, mechanical, and turbine systems. This coverage helps businesses recover from unexpected equipment failures and disruptions to their operations.

Liability coverage

Liability coverage encompasses various types of insurance protection for businesses, including general liability, products liability, advertising liability, and fire legal liability. This coverage safeguards businesses against lawsuits, judgments, and settlements arising from accidents, injuries, or damages for which the insured is held liable.

Pros and cons of business and personal property coverage form (BPPCF)

Weigh the risks and benefits
Here is a list of the benefits and drawbacks to consider when evaluating BPPCF:


  • Comprehensive coverage against a wide range of perils
  • Customizable through endorsements to meet specific business needs
  • Part of a broader commercial insurance portfolio for comprehensive risk management


  • Exclusions for certain perils, such as flood, war, and earthquake, may leave businesses vulnerable to uncovered risks
  • Endorsements may lead to increased premiums, impacting the overall cost of insurance
  • Complexities in policy terms and conditions may require professional guidance to ensure adequate coverage

Examples of business and personal property coverage form (BPPCF) in action

Let’s explore a few scenarios to illustrate how BPPCF works in real-life situations:

Retail store

A retail store purchases a BPPCF policy to protect its owned building, inventory, and equipment from potential damages caused by fire, theft, or vandalism. In the event of a fire that destroys the building and damages the inventory, the BPPCF coverage would provide financial compensation to repair or rebuild the structure and replace the lost inventory, helping the business recover from the loss.

Professional office

A professional office leases office space in a commercial building and invests in office furniture, computers, and other business equipment. The office obtains BPPCF coverage to safeguard its leased office space and business assets against risks such as water damage or burglary. If a pipe bursts and floods the office, causing damage to furniture and electronic equipment, the BPPCF policy would cover the cost of repairs or replacements, minimizing the financial impact on the business.

Factors to consider when choosing BPPCF endorsements

When customizing BPPCF coverage through endorsements, businesses should consider several factors to ensure comprehensive protection:

Risk assessment

Businesses should conduct a thorough risk assessment to identify potential hazards and vulnerabilities specific to their operations. By understanding their unique risk exposures, businesses can select endorsements that address the most significant risks and mitigate potential losses.

Cost-benefit analysis

Before adding endorsements to BPPCF policies, businesses should perform a cost-benefit analysis to evaluate the financial implications. While endorsements can enhance coverage, they may also increase premiums. Businesses should weigh the potential benefits of additional coverage against the associated costs to determine the most cost-effective options.


Business and personal property coverage form (BPPCF) plays a vital role in protecting businesses against unforeseen damages and losses to owned and non-owned properties. With comprehensive coverage options and customizable endorsements, BPPCF policies offer businesses the flexibility to tailor insurance protection to their specific needs and risk exposures. By understanding the coverage provided by BPPCF, businesses can mitigate potential financial risks and ensure continuity in the event of unexpected events. As a key component of the simplified commercial lines portfolio (SCLP) policy, BPPCF contributes to comprehensive risk management strategies for businesses across various industries. With careful consideration of coverage options and endorsements, businesses can effectively safeguard their assets and operations against potential perils, providing peace of mind and financial security.

Frequently asked questions

What is the difference between owned and non-owned business personal property?

Owned business personal property refers to assets that belong to the insured business, including buildings, equipment, inventory, and furnishings. Non-owned business personal property, on the other hand, includes improvements made by the insured to leased properties and personal property belonging to others but in the custody of the insured.

Can I customize my BPPCF coverage to include additional perils?

Yes, BPPCF coverage can be expanded through endorsements to include additional perils not covered by standard policies. Businesses can customize their coverage to include protection against specific risks such as earthquake, radioactive contamination, or off-premises property damage.

What factors should I consider when selecting BPPCF endorsements?

When choosing BPPCF endorsements, businesses should consider factors such as their industry, location, operational risks, and budget. Conducting a thorough risk assessment and performing a cost-benefit analysis can help businesses identify the most suitable endorsements for their needs.

Are there any exclusions to BPPCF coverage?

While BPPCF policies typically offer broad coverage, certain perils may be excluded from standard policies. Common exclusions include flood, war, wear, and earthquake. It’s essential for businesses to review their policy terms and conditions carefully to understand any limitations or exclusions.

What is the role of BPPCF within the Simplified Commercial Lines Portfolio (SCLP) policy?

BPPCF is a key component of the SCLP policy, which provides comprehensive coverage for businesses against various risks and liabilities. Along with BPPCF, an SCLP policy typically includes crime coverage, boiler and machinery coverage, and liability coverage, offering businesses a comprehensive risk management solution.

How do endorsements affect BPPCF premiums?

Adding endorsements to BPPCF policies may increase premiums, as additional coverage typically comes with higher costs. Businesses should weigh the benefits of enhanced coverage against the associated premium increases to ensure they maintain adequate protection while managing insurance costs effectively.

Is professional guidance recommended when selecting BPPCF coverage?

Yes, businesses may benefit from consulting with insurance professionals or risk management advisors when selecting BPPCF coverage. Insurance policies can be complex, and professional guidance can help businesses navigate policy terms, understand coverage options, and make informed decisions to ensure they have adequate protection.

Key takeaways

  • The business and personal property coverage form (BPPCF) provides essential insurance protection for owned and non-owned properties against accidental damages.
  • BPPCF coverage can be customized through endorsements to tailor insurance policies to the specific needs and risk exposures of businesses.
  • BPPCF is a critical component of the simplified commercial lines portfolio (SCLP) policy, offering comprehensive coverage alongside crime, boiler and machinery, and liability coverage.

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