Business Personal Property Coverage Form Bppcf

Key Takeaways

• BPPCFs protect businesses from accidental damage to owned and non-owned property.
• Coverage often excludes flood, war, wear, and earthquake damage.
• Endorsements can enhance coverage and include specific risks like earthquakes.
• The BPPCF is a primary component of the Simplified Commercial Lines Portfolio policy.
• SCLP also covers crime, boiler and machinery, and liability.
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What Is the Business and Personal Property Coverage Form (BPPCF)?

The business and personal property coverage form (BPPCF) is a commercial insurance form that covers accidental damage to owned buildings and business personal property, including certain non-owned property. Common exclusions include flood, war, wear and tear, and earthquakes. Endorsements can expand coverage, and the BPPCF is used within the simplified commercial lines portfolio (SCLP).

Features of Business and Personal Property Coverage

Most business and personal property coverage forms (BPPCF) insure against all categories of peril, basic causes of loss, broad causes of loss and special causes of loss. That means the BPPCF usually covers virtually all perils except those specifically excluded on the special causes of loss form. Policies typically exclude flood, war, wear and earthquake from coverage.

Owned buildings include buildings declared in the policy as well as permanent fixtures and improvements to those buildings. Owned business personal property includes property belonging to the insured. Non-owned business personal property includes permanent improvements the insured has made to leased property as well as personal property belonging to another party but in the custody of the insured.

Insurance policies may expand BPPCFs through endorsements. For example, BPPCF may, through endorsements, insure against earthquake and radioactive contamination and extend coverage to personal effects, papers and records and off-premises property on a location not owned by the insured. Endorsements may also increase the coverage limits for things like outdoor property and trees.

Understanding the Simplified Commercial Lines Portfolio Policy

The BPPCF is one part of a simplified commercial lines portfolio (SCLP) policy, which insures a business against damages and losses. The other three parts of an SCLP policy are crime coverage, boiler and machinery coverage and liability coverage. Many people use SCLP and BPPCF almost interchangeably, as the BPPCF is the most prominent part of an SCLP policy.

Crime coverage insures against forgery or alteration; fraud; kidnap, ransom or extortion; employee dishonesty; theft, disappearance or destruction; and money orders and counterfeit money.

Boiler and machinery coverage insures against losses caused by the breakdown of items belonging to the insured or in the custody of the insured in four categories: electrical, pressure and refrigeration, mechanical and turbine.

Liability coverage covers the costs of lawsuits, judgments and settlements stemming from accidents in which the insured or an employee of the insured is at fault. This includes general liability, products and completed operations, advertising and personal, medical payments and fire legal. Each category typically comes with its own liability limit. At the same time, the policy will impose a combined limit of liability in all categories except for products and completed operations, which is controlled by a separate annual limit.