Business Personal Property
Business Personal Property is the movable items your restaurant owns, including kitchen equipment, furniture, inventory, supplies, and other contents that aren't permanently attached to the building.
What You Need to Know
This is everything inside your restaurant that you'd need to replace if the building were destroyed — your stoves, refrigerators, tables, chairs, point-of-sale system, dishes, food inventory, and bar supplies.
What qualifies:
- Kitchen equipment — cooking equipment, refrigeration, prep equipment, smallwares
- Furniture and fixtures — dining room furniture, bar equipment, office furniture
- Technology — POS systems, computers, phone systems, A/V equipment
- Inventory — food, beverages, dry goods, paper goods, cleaning supplies
Items permanently attached to the building — built-in hood systems, plumbing, HVAC, flooring — are typically covered under building coverage instead. You choose between Replacement Cost valuation (pays to replace at current prices, no depreciation) or Actual Cash Value (pays depreciated value, lower premium but real out-of-pocket exposure).
Why It Matters for Restaurant Owners
Restaurants often have $100,000-$500,000+ in business personal property, yet many owners underinsure this category because they underestimate replacement cost.
Commonly overlooked items that add up:
- Kitchen smallwares — plates, bowls, glasses, flatware, pots and pans can total $8,000-$14,000
- Paper and disposables — to-go containers, napkins, cups, typically $2,000-$5,000
- Cleaning and janitorial supplies — typically $1,000-$3,000
Most policies include an 80% coinsurance clause — if you're underinsured relative to actual value, claim payments are reduced proportionally, so you pay out-of-pocket even on a claim smaller than your limit. Create a detailed inventory with photos and current replacement costs, and consider an agreed value endorsement to eliminate the coinsurance requirement altogether.
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