How is business personal property defined in an insurance context?

Business personal property is defined as property owned by a business that is not classified as real property. This encompasses a wide range of tangible assets that a business uses to conduct its operations but does not include land or buildings. Examples of business personal property include equipment, furniture, machinery, and inventory that are not permanently attached to a structure.

The distinction is important in insurance, as business personal property typically requires different coverage compared to real property, which is generally covered under a separate policy or section of a policy that might pertain to buildings and land. Understanding this definition helps ensure that businesses adequately insure all their movable assets that are critical for day-to-day operations.