Under a BAP, what does the specified perils coverage cover?

Specified perils coverage under a Business Auto Policy (BAP) is designed to protect against only those risks explicitly outlined in the policy. This means that if a peril is not listed in the agreement, then it would not be covered, which leads to a potential gap in protection if other types of incidents occur.

For example, if the policy specifies coverage for risks such as fire, theft, and vandalism, then only damages resulting from these causes would be compensated. This type of coverage is often less comprehensive than other forms, such as comprehensive or all-risk coverage, which aim to cover a broader range of incidents. By focusing strictly on the enumerated perils, it provides a clear understanding of what is protected and what is excluded, emphasizing the importance of knowing the specific risks involved when selecting insurance coverage.

This approach differs from options that suggest full coverage for all damages, exclusive coverage for liability damages, or comprehensive damages, which would imply a much broader scope of protection than the specified perils coverage actually offers.