What is the main purpose of the Business Auto Policy (BAP)?

• A. Provides health insurance for employees
• B. Covers property theft and vandalism
• C. Offers property damage and liability insurance for business vehicles
• D. Insures personal vehicles used for business

Answer: (C)

The main purpose of the Business Auto Policy (BAP) is to provide property damage and liability insurance specifically for vehicles owned or operated by a business. This type of policy is designed to cover the unique risks associated with using vehicles for business purposes, such as transporting goods, delivering services, or traveling for business-related tasks. The coverage typically includes bodily injury liability, property damage liability, and physical damage coverage for vehicles, which protects the business from financial losses resulting from accidents or damage involving their vehicles.

This focus on business vehicles sets the BAP apart from other types of insurance policies. Health insurance for employees is managed through separate health insurance policies, while property theft and vandalism are typically covered under different property insurance policies rather than the BAP. Additionally, insuring personal vehicles used for business would fall under a different type of policy, often requiring endorsements or specific coverage options rather than the broader BAP designed for commercial vehicles.