What Is the Business and Personal Property Coverage Form (BPPCF)?

The business and personal property coverage form (BPPCF) is a form that defines the aspect of a commercial insurance policy that insures against accidental damage to owned buildings, owned business personal property and non-owned business personal property.

Understanding the Business and Personal Property Coverage Form (BPPCF)

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.

The Simplified Commercial Lines Portfolio (SCLP) 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.