What does a "business auto policy" generally cover?

A business auto policy is designed specifically for businesses and provides coverage for vehicles that are owned, leased, or used in the course of business operations. This typically includes trucks, vans, and cars that a business may own or use to transport goods, deliver services, or for employee use related to business functions.

The coverage generally extends to not only the physical damages to the vehicles themselves but also the liabilities that arise from their use. This means that if an employee is driving a company vehicle and causes an accident, the business auto policy would cover the liability associated with that incident, protecting the business from the financial repercussions of such claims.

This comprehensive coverage is essential for businesses because personal auto policies usually do not cover vehicles used solely for business purposes, which can leave a significant gap in protection. The other options imply either a too-narrow focus on specific scenarios or coverages that do not encompass the complete spectrum of risks that a business might face regarding their vehicles, making the understanding of the business auto policy crucial for any business owner.