Business Automobile Policy - BAP
Categories: Insurance
An insurance policy that provides coverage for liability and damage associated with vehicles used by a company or its employees for business purposes.
One major way this differs from personal auto coverage is the amount of liability coverage (i.e., the recommended minimum is $500K, since both the driver’s and company’s assets are exposed to legal action in case of an incident).
Bandit just bought a new sports car for his bootlegging, er...intrastate moving services company. While conveying some adult beverages from Texas to Georgia, he ran into his competitor, Buford, at a roadside diner. After a few iced teas, they decided to race each other to the county line.
While racing, Bandit’s car scraped along Buford’s, sending him out of control and off the road into a nearby stream. Luckily, Bandit had a BAP that protected against paint damage (while Buford had no BAP of any sort).
