What Is a Business Automobile Policy (BAP)?

A business automobile policy (BAP) provides coverage for a company’s use of cars, trucks, vans, and other vehicles in the course of carrying out its business. Coverage may include vehicles owned or leased by the company, hired by the company, or employee-owned vehicles used for business purposes. A BAP covers both liability and damage. A business automobile policy is also known as a business auto coverage form

What Does Commercial Auto Insurance Cover?

Commercial auto insurance typically provides coverage for: liability damages; collision or comprehensive physical damage loss to your business autos; medical expenses for injury to occupants of your business autos; and damages sustained by occupants of your business autos due to the negligence of an uninsured or underinsured motorist.

The commercial auto policy provides physical damage coverage for vehicles you own, lease, hire or use in your business and liability coverage for bodily injury and property damage caused to others by your use of the insured business vehicles.

Many types of coverage are available. Some of the most common coverages include:

  • Collision coverage pays for accident-related damage to your insured business vehicle.
  • Comprehensive coverage pays for damage to your insured business vehicle from non-collision causes such as theft, weather, vandalism or fire.
  • Rental reimbursement pays for a rental vehicle, up to certain limits, after an accident causes damage to your insured business vehicle.
  • Liability coverage pays injury damages to others and damage to other people’s property if you are at fault, including your legal expenses if you’re sued.
  • Uninsured or Underinsured Motorist coverage pays for injury damages to or property damage suffered by occupants of your insured business vehicle if the accident is caused by an inadequately insured driver.
  • Personal Injury Protection pays medical expenses and income loss for accident-related injury suffered by occupants of your insured business vehicles, regardless of fault.
  • Medical Payments coverage pays medical or funeral expenses for accident-related injury suffered by occupants of your insured business vehicles, regardless of fault.

Do I Need Commercial Automobile Insurance?

If you own, lease, hire or use vehicles for business, you should minimally carry liability coverage. It’s mandatory in most states for owned autos. In addition, businesses that move goods or people across state lines are required by federal law to have it. For larger commercial vehicles, you may need a commercial truck insurance policy.

You need commercial auto insurance for vehicles that:

  • Are used for business.
  • Carry a commercial license plate or tag.
  • Are registered commercially.


  • A business auto coverage form is a legal document used in commercial auto insurance contracts.
  • It’s important to know that a personal automobile insurance policy usually does not cover vehicles used in the operation of your business.
  • It specifies the vehicles and risks covered under the contract.
  • Policyholders who require additional levels of coverage can purchase broadening endorsements to further reduce their risk.

How Do I Purchase Commercial Auto Insurance?

You can purchase commercial auto insurance through an independent insurance agency like us. We will take time to understand your business operations and vehicle use so you can have optimal coverage at a fair price. We will also help guide you through the claims process when an incident occurs.

Using one agent for all your business insurance can also ensure your business has maximum protection and you aren’t paying for unnecessary duplicate coverage.

How Much Does a Policy Cost?

It depends. The price is based on factors including:

  • Business size:
  • Number and types of vehicles insured:
  • Number of employees driving vehicles insured:
  • Costs of vehicles hired/leased:
  • Business and driving risks:
  • Amount of coverage.

Atlas Insurance Agency can help you find affordable coverage.

Call us: 631-951-2038