Briefcase an Item of Business Property?

One of our homeowners insureds was on a business trip recently when his $400 briefcase was stolen from his hotel room. The insurer will pay only $250, the limit for off-premises business property. The insured does not believe that his briefcase should be treated as business property, and we agree. After all, a “business suit” would not be considered business property. What is your opinion?

Virginia Subscriber

A briefcase, even though generally carried by the insured to help organize and carry business papers, is not business property for purposes of the homeowners coverage limitation. Items such as business suits and briefcases are personal articles similar in nature to wallets, watches, pens, etc. Although insureds may make use of them during the course of their employment, they would not be considered part of the insured's business equipment, supplies, or inventory.

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