Personal Effects and Theft

by Taylor Agency Staff on January 5, 2015

There’s no predicting what your employees will bring to work. The briefcases of today’s employees easily can contain thousands of dollars worth of electronics. It’s not hard to imagine a laptop loaded with software and business data, an iPod, an iPhone and a mini-digital camera all in one brief case. Poof! Gone! In single, sticky-finger moment, this pricey equipment and all its even more valuable data—stolen.

A standard commercial property insurance policy will extend coverage for business personal property to the personal effects and property of others. However, there are two very important limitations:

1. Coverage for the personal effects and property of others has a separate coverage limit.
Without an endorsement, the standard commercial property policy has a limit for personal effects and property of others that may be significantly less than the business personal property limit shown on the policy’s declarations page. For example, the policy may include $100,000 for business personal property coverage but limit the amount payable for personal effects and property of others to $2500.

2. Coverage for personal effects and property of others does not apply to theft. That one can hurt.

Many businesses reduce their liability risk for uncovered losses of personal property by posting signs that indicate that the business is not responsible for personal items. Others carry an endorsement on their commercial property insurance that specifically closes the gaps left by a standard policy.

Call our service team for suggestions on how to minimize your business’ risk exposure for the loss of personal items on your property.

Source: Insurance Services Office

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