What types of physical damage coverage are available under a business automobile policy (BAP)?

A business automobile policy (BAP) typically provides three main types of physical damage coverage: collision, comprehensive, and specified perils.

Collision coverage is designed to cover damages to the insured vehicle resulting from a collision with another vehicle or object, regardless of who is at fault. This type of coverage is crucial for businesses as it helps manage repair or replacement costs after an accident.

Comprehensive coverage protects against damages to the vehicle that are not due to a collision. This includes incidents such as theft, vandalism, natural disasters, and other covered non-collision events. This coverage is essential for safeguarding the investment a business has made in its vehicles from various unforeseen risks.

Specified perils coverage offers protection against specific named risks that are outlined in the policy. This is a narrower coverage option compared to comprehensive and is only applicable for the particular hazards explicitly listed in the policy terms.

Together, these coverages ensure that businesses have a robust safety net that addresses different types of physical damage to their vehicles, making coverage under collision, comprehensive, and specified perils a comprehensive option for business automobile needs.