Alabama Insurance Adjuster Practice Exam

In Business Personal Property coverage, which of the following items is typically covered?

1. Vehicles used for personal purposes

2. Furniture and fixtures

3. Intangible assets

4. Real estate

The correct answer is: Furniture and fixtures

Business Personal Property coverage is designed to protect the physical assets that a business owns and uses in its operations. This type of coverage typically includes items such as furniture, fixtures, machinery, and equipment that are used for business purposes. Furniture and fixtures are integral to a company’s operations, providing the necessary infrastructure for conducting business whether it’s desks, chairs, cabinets, or shelving. These items are typically categorized as tangible property, making them eligible for coverage under Business Personal Property policies. The other options do not fit the criteria for coverage under this specific insurance type. Vehicles used for personal purposes are generally covered under different policies, such as personal auto or commercial auto insurance. Intangible assets, like intellectual property or goodwill, cannot be insured under Business Personal Property coverage, as they don’t qualify as physical objects. Lastly, real estate is not included in this coverage as it is typically addressed under Real Property coverage instead.