What is business contents insurance?

Business contents insurance protects the furniture, equipment, inventory, supplies, and other movable property your business relies on every day. It can help with financial losses if these items are stolen, damaged, or destroyed by a covered event. Business contents insurance is also known as business personal property (BPP) coverage.

What counts as business contents?

Business contents are the movable items your company keeps on-site, such as desks, chairs, shelving, computers, electronics, inventory, tools, and equipment. It can also include some fixtures that aren't permanently attached to the building, like freestanding appliances.

Not everything at your location counts as business contents. Different types of property may require different types of coverage. Your building may need commercial property protection, while company vehicles may need commercial auto insurance.

Business contents insurance vs. building coverage

Business contents insurance can cover the property inside your business, while building coverage applies to the structure itself. For example, building coverage can repair walls, roofing, and other structural components, while contents insurance may help to repair or replace property kept inside the building. Many businesses carry both types of protection.

How business contents insurance works

Business property contents coverage is typically part of a commercial package policy (CPP) or business owners policy (BOP). It's not something you buy separately. Understanding what qualifies as a covered loss and how claims are handled can help you make more informed decisions about your insurance.

What is a covered loss in business contents insurance?

A covered loss is an event included in your policy that affects your business property. Common examples include fire, theft, and vandalism involving equipment, inventory, or furnishings.

What happens when a covered loss occurs?

If a loss occurs, you'll typically follow a few simple steps as you go through the claims process:

  1. Collect details about the incident, including photos, receipts, police reports, and a list of affected property.
  2. Check your policy to find your insurer's name and contact information.
  3. File a claim with your insurance company. Customers with a BOP underwritten by Progressive Commercial can submit a claim by calling 1-855-737-4527.
  4. If the claim is approved, you'll pay your deductible. This is the amount you're responsible for before your coverage kicks in.

The amount your policy covers will depend on the extent of the loss and your coverage limits. Get an online business contents insurance quote or talk with a specialist to review your options.

Why business contents insurance matters

You rely on physical assets to keep your business running. When they're damaged or lost, the financial impact can add up quickly:

  • Owned equipment replacement: Computers, tools, and specialized equipment can be costly to repair or replace.
  • Leased or rented equipment repairs: Even if you don't own certain equipment, you may still be responsible for payments or repairs if it's damaged or unusable.
  • Inventory loss: Lost or damaged inventory can disrupt sales, delay orders, and create additional costs to restock and recover.

Contents coverage on a BOP can reduce the financial impact of property losses and resulting business interruptions. Progressive Commercial can help you find coverage that reduces these out-of-pocket costs and keeps your operations on track.

What does business contents insurance cover?

Business contents insurance can cover the repair or replacement of furniture, tools, equipment, computers, inventory, and other supplies. For instance, it can help after events like a fire that damages office equipment, a break-in with stolen inventory, or water damage from a burst pipe that affects stored supplies. Depending on your policy, payment may be based on replacement cost or actual cash value.

What business contents insurance doesn't cover

Some property may require other types of insurance. Common examples include:

  • Company vehicles: These typically need commercial auto coverage.
  • High-value or specialized items: You may need additional coverage or endorsements for certain types of property, even if they're movable.
  • Tools and equipment used off-site: Property that regularly travels between job sites or locations may require tools and equipment insurance (also called inland marine).
  • Personal property owned by employees or customers: This generally isn't considered business contents. Damage to someone else's property may be covered by general liability insurance or the liability portion of a BOP.

Where business contents insurance covers your property

Business contents insurance typically applies to property kept at the insured location. If equipment, inventory, and materials are regularly transported, stored off-site, or used at multiple locations, you should consider adding inland marine insurance to your BOP.



Who needs business contents insurance?

Businesses that own or lease equipment, inventory, furniture, or other company property can benefit from business contents insurance. Examples include:

If replacing business property after a loss would create a financial burden, it may be worth considering business contents insurance.

How much business contents insurance do you need?

The right amount of coverage depends on the value of your business property. These steps can help you estimate that value and choose appropriate coverage limits:

  • Review the assets listed on your balance sheet.
  • Create an inventory of your business property.
  • Estimate what it would cost to replace each item today rather than its original purchase price.
  • Update your list as you add equipment, inventory, or other business property.

Regularly reviewing your policy can help ensure it keeps pace with changes in your business.

Replacement cost vs. actual cash value

When purchasing business contents insurance, you can typically choose between replacement cost and actual cash value coverage. The difference is how your property is valued after a loss.

  • Replacement cost: Pays to repair or replace property with a similar item.
  • Actual cash value: Pays based on the property's current value after accounting for age and wear.

Because replacement cost generally provides a higher payout, it may also result in higher premiums. Consider what's right for your business when choosing coverage.

How much does business content insurance cost?

Small business contents insurance is typically included in a business owners policy. In 2025, the average cost of a BOP for new Progressive Commercial customers was $127 per month. The amount you'll pay can be based on a variety of factors, such as:

  • Property value
  • Industry and type of operations
  • Business location
  • Size of business
  • Claims history
  • Security and safety measures

Businesses with higher-value property or greater risk exposure may pay more for coverage. You may be able to lower costs by installing security systems, maintaining your property, and taking steps to protect valuable equipment.

How to get a business contents insurance quote

Business contents insurance is one of the coverages that's included in a BOP. When getting a quote, you'll usually need to provide:

  • An estimate of the value of your business property
  • Information about your business type and operations
  • Details about your location and surrounding property

Start a business contents insurance quote online or call one of our insurance specialists to learn more about your options.

Common questions about business contents coverage

Is business contents insurance required?

It depends. Business contents insurance isn't usually required by law, but it may be a condition of lease agreements and lenders. Even when it's optional, many business owners choose this coverage to help manage unexpected costs.

Do I need business contents insurance if I lease my space?

Yes, even if you lease your space, you're typically responsible for the equipment, furniture, and inventory inside it. Business renters insurance with contents coverage can help protect those items.

Does business contents insurance cover rented equipment?

Yes, business contents insurance can cover leased or rented equipment, depending on your policy. This can be important because you may still be responsible for repair or replacement costs even if you don't own certain items.

Does business contents insurance cover inventory?

In most cases, yes. Inventory is usually considered part of your business contents and can be included in your policy.

How often should I update my business contents coverage?

It's a good idea to review your policy regularly, especially if you add new equipment, increase inventory, or make changes to your operations. Keeping it up to date helps reflect the current value of your business property.

Does business contents insurance cover theft and fire?

Yes. Fire and theft are typically covered by business contents insurance. Review your policy terms and limits to learn more.

Why choose Progressive Commercial

With more than 50 years of experience, Progressive Commercial helps businesses find coverage that fits their needs. We offer flexible insurance options and easy online quoting. Prefer to talk it through? Give us a call.