In determining insurance values, how should items like cleaning equipment be categorized?

In the context of insurance valuation, cleaning equipment should be categorized as Business Equipment. This classification includes items that are essential for the operation of a business and contribute directly to its productivity and service capabilities.

Business Equipment encompasses tools, machinery, and other equipment used in business operations—cleaning equipment facilitates the maintenance and operation of the business’s physical environment, which is crucial for organizational efficiency and effectiveness.

Alternatively, inventory typically refers to goods that are held for sale to customers, while building is a broader category that covers the physical structures of the business itself, including walls, roofs, and other fixed items. Office supplies are consumables used in a workplace, like paper and pens, not equipment that aids in service delivery. Thus, categorizing cleaning equipment as Business Equipment aligns accurately with its functional role in the day-to-day operation of a business.