What is covered by a business auto policy?

A business auto policy is designed specifically to provide coverage for vehicles that are owned, leased, or utilized by a business. This includes a range of vehicles used in the day-to-day operations of a business, such as cars, trucks, and vans that are owned by the business entity itself. The primary purpose of this policy is to protect against various risks associated with business-related vehicle use, including liability for bodily injury and property damage resulting from accidents.

The nature of a business auto policy means it does not extend to personal vehicles that are owned by the employees or owners unless those vehicles are used specifically for business purposes as outlined in the policy. A business auto policy also does not apply to vehicles that are not under the ownership of the business, such as large trucks beyond a specific weight limit, or luxury cars owned by individuals, because these vehicles are not classified as business vehicles in the context of the policy.

Therefore, the correct answer emphasizes the importance of properly insuring any vehicle that is owned and intended for use in the course of business operations to ensure adequate coverage for potential liabilities that may arise from their use.