What is it?
Business Automobile Coverage (BAC) protects a company from financial losses when it uses cars, vans, or other vehicles during business operations. Coverage includes vehicles owned by employees and used for business in company hired or leased vehicles. Business automobile policies cover damage and liability.
Who is it for?
If your company uses cars to carry out business, you probably should have BAC. Business owners and managers should not rely on their personal auto policy to cover their business vehicles. Most personal policies have exclusions for business-related exposure.
How it works
A Business Automobile Policy can provide coverage for all of a company’s vehicles driven on public roads. This policy can be individualized for each covered vehicle, so each vehicle can carry different levels of coverage. A Business Automobile Policy will show the vehicle covered and a vehicle identification number (VIN) for the covered vehicle. The policy will also show what it covers and what the insurance company will pay to the business.
Different Coverage in Existence
If the vehicle is a lease, or the company makes regular payments on it, specific types of coverage may be necessary. There are different levels of coverage worth considering, including collision coverage, comprehensive coverage, specific perils coverage, and liability coverage. Keep in mind that collision coverage goes hand in hand with comprehensive and liability coverage. Comprehensive coverage includes vehicle damage for reasons besides a collision, including acts of nature.
There are many important benefits that BAC offers. First, it keeps a business compliant with state and local laws. Second, a BAC policy protects both you and your employees. When you or an employee are driving a vehicle covered by your BAC policy, you will also have coverage for any other vehicles involved in your accident. Third, the policy protects your whole business from employees’ mistakes. Without the policy, your business could be liable for employees’ mistakes and litigation could bankrupt your business.