Typically commercial insurance property policies do not cover items that can be and should be insured on other policies. There are other exclusions and limitations with regards to business personal property insurance that is important for you to understand where your coverage starts and ends. One of the biggest areas regarding contents that can be subject to dispute is that of property of others. Almost all property insurance policies exclude property of others unless the policy is specifically endorsed to provide that type of coverage.
If you happen to be in the transportation business the property of others can take on various values and risk characteristics that can change substantially from cargo to cargo. Therefore businesses that are in the transportation industry typically have motor truck cargo insurance specifically accept these types of exposures. If you happen to be any business that provides services for property of others this can also create gaps in coverage if you do not have the appropriate property of others coverage.
If you are in the auto repair industry, depending on how many vehicles you have any one time the property of others coverage can be quite substantial. In this service industry this type of coverage is called garage keepers insurance. It provides protection for the garage owner for the cars that you keep on the premises to service, repair, etc...
Agricultural type of content's such as crops, hay, fruit trees, potatoes, etc. are also not covered under the property insurance. The property insurance policy also excludes coverage for any land or water that is on the premises. To protect against abuse all property policies in United States have provisions that exclude any coverage for property that is of a contraband nature which means property that is illegal. Title and ownership of property can also be issues when it comes to property insurance. If you sell your property or parts of your inventory still remains on your premises there might not be any coverage for that since you no longer have an insurable interest in the property as it has been sold.
Although they may be listed on your balance sheet as personal items and contents, automobiles, trucks, and vehicles are not covered under the property insurance policy. Even though you might have vehicles stored on the premises they are almost always going to be covered under your automobile policy and not on the property insurance policy. Knowing how your policy defines "property" is important as what you as the insured thinks is property is usually no 100% what the insurance company defines as property.
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