Every business may face a loss due to its owning, renting, using, or loading/unloading a vehicle. Most auto exposures can be handled by a business auto policy (BAP) or similar form. BAPs may cover a variety of operations including trucking, garaging, public and private transport, and businesses with auto exposures that fall outside the other classes. Coverage is flexible and may be purchased as a separate policy or as part of a package of coverage that may also protect buildings and business property (equipment, furniture, etc.). A BAP generally offers:
- Liability Coverage: This provides protection for physical injury to other persons or their property because of an accident related to your covered vehicle including legal defense cost or expense
- Comprehensive Coverage: This handles loss from any cause except collision. This includes, but is not limited to fire, theft, vandalism, glass breakage, and hitting an animal.
- Collision: This takes care of damage from crashes with another object or overturn of the vehicle
- Rental Vehicle Coverage: If you damage your car, it may be possible to buy coverage for a temporary replacement vehicle.
Business Auto Policy Exclusions
Typically a business auto policy (or similar form) will not provide coverage for the following:
- Any injury/damage that you expected or intended
- Responsibility for damage you assume under a contract
- Losses that should be handled by a workers’ compensation, disability benefits, or unemployment compensation law
- Bodily injury to an employee caused by a fellow employee
- Damage to property that is in your care, custody, and control
- Any bodily injury or property damage that occurs because of pollution
- Any loss that is related to racing, demolition, or stunts
- Other items that are not covered are the same as those found with most types of policies, such as nuclear hazard or any type of war or military action. Racing, wear and tear, freezing, mechanical or electrical breakdown, blowouts, punctures, or other road damage to tires are also excluded.
These are complicated and complex issues that should be discussed with us directly. Please call us at 610-933-4950.