Claims Adjuster Practice Exam 2026 - Free Claims Adjuster Practice Questions and Study Guide

A Business Auto Policy is specifically designed to provide coverage for vehicles that are used for business purposes. This type of insurance typically includes coverage for owned vehicles, hired vehicles, and non-owned vehicles used in the course of business operations. It protects businesses from financial losses resulting from traffic accidents involving these vehicles, including liability coverage for bodily injury and property damage that may occur as a result of using the vehicle in the business activities.

In contrast to personal auto coverage, which is tailored for personal use vehicles, the Business Auto Policy encompasses a broader range of vehicle types and uses specific to business operations. This kind of coverage is essential for businesses that rely on transportation as part of their operations, whether it involves delivery services, transporting employees, or other commercial activities. Thus, the primary function of a Business Auto Policy is to cover risks associated with commercial vehicles, making it distinct from the other options offered.