What Does Fixed Asset Mean?
Fixed assets are items of property that a business owns that do not get consumed, but that are used to help the business generate profits. Examples of fixed assets are land, machinery, and real estate. In the context of insurance, business owners commonly buy fixed asset insurance, or business insurance that covers fixed assets.
Insuranceopedia Explains Fixed Asset
Fixed assets are often worth a significant amount of money. Further, they can be critical for a business' successful operation. This is why business owners commonly purchase this insurance for these assets. Fixed assets are often sold to generate cash for the business. However, in order to be considered a fixed asset of the business, the item must not be scheduled to be sold for at least a year after the present time. Fixed assets are tangible as opposed to intangible assets, such as intellectual property.