What constitutes "business property" under commercial insurance?

"Business property" under commercial insurance is defined as physical items owned by the business. This includes tangible assets like equipment, furniture, inventory, and buildings that the business owns and uses in its operations. These assets are crucial for generating revenue and supporting the everyday functions of the business.

In contrast, services provided to customers are not considered physical assets, but rather the outputs of the business operations. Licenses and permits hold regulatory value but do not fall under the category of business property as they are not physical items. Similarly, accounts receivable and payable represent financial transactions and obligations rather than tangible property. Therefore, the definition of business property is firmly rooted in the physical assets that a business owns and operates, making the first option the correct choice.