DEFINITION of 'Business Automobile Policy - BAP'

An insurance policy that covers 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.



BREAKING DOWN 'Business Automobile Policy - BAP'

It is recommended that a company obtain a business automobile policy even if it does not own vehicles if its employees use personal vehicles for business purposes. In the event of a serious accident the employee may not have enough personal liability coverage to adequately protect the business.



RELATED TERMS
  1. Business Auto Coverage Form

    A form that insurers provide to business owners when creating ...
  2. Alternative Motor Vehicle Credit

    A tax credit given to individuals who purchase vehicles that ...
  3. Automobile Liability Insurance

    Financial protection for a driver who, while operating a vehicle, ...
  4. Gap Amount

    Insurance will only cover a certain amount of coverage if leased ...
  5. Combined Physical Damage Coverage

    Combined physical damage coverage is an auto insurance policy ...
  6. Class 1 Insurance

    Insurance that covers an individual occupying an owned vehicle, ...
Related Articles
  1. Insurance

    Top Tips for Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  2. Insurance

    How to Find the Right Car Insurance

    Finding the right car insurance can be difficult. However with these strategies, you can get the most for your money, protect your assets and your health.
  3. Insurance

    Millennials Guide: Picking the Right Car Insurance

    Millennials fall into the category of high car-insurance rates. Check out some of the ways to save money, like owning an older car or leasing a vehicle.
  4. Personal Finance

    Used Car Shopping: How To Avoid A Lemon

    Being prepared before buying will save you thousands in the long run.
  5. Personal Finance

    Wait on Buying a Pickup (F, GMC)

    Used car prices are dropping everywhere. But if you're in the market for a pickup truck, a good bargain is less of a guarantee – thanks to strong demand.
  6. Personal Finance

    What Are the Costs of Leasing Vs. Buying a Car?

    The cost difference between buying versus leasing a vehicle can be tens of thousands of dollars over a lifetime
  7. Insurance

    How Car Insurance Companies Value Cars

    Learn the methodology used by car insurance companies to value cars, and understand why the amount they give you may not cover the cost of a similar vehicle.
  8. Personal Finance

    Auto Leasing Hits Record High in Q4

    On Thursday, Experian Automotive – a company that tracks financing options for new and used vehicles – released a report that highlights more consumers are leasing, rather than buying, new or ...
  9. Insights

    U.S. Government Outlines Policy for Autonomous Vehicles

    The focus of the policy will be to facilitate “responsible introduction” of self-driving vehicles in order to make transportation safer, cleaner, more accessible and more efficient.
  10. Insurance

    The Facts About Rental Car Insurance

    Find out if the extra insurance is really worth it.
RELATED FAQS
  1. How have low interest rates affected lease rates in the automotive sector?

    Find out how and why lower interest rates for leasing new automobiles have helped spur more consumers to lease cars instead ... Read Answer >>
  2. What is the best way to get exposure to electric cars when investing in the automotive ...

    Learn more about the electric vehicle industry and what investment opportunities are available among auto manufacturers and ... Read Answer >>
  3. Suppose my garage collapsed onto my car. Are damages covered by my home insurance ...

    Generally, damage to an automobile will be covered by comprehensive car insurance, which is in addition to collision coverage ... Read Answer >>
  4. When buying a car, is it better to have a trade in or a down payment?

    When buying a car, it may be better to have a down payment rather than a trade in. A trade in offers convenience to the car ... Read Answer >>
  5. What types of companies are in the automotive sector besides auto manufacturers?

    Explore the relationships between automobile manufacturers and the numerous other types of companies that work in the automotive ... Read Answer >>
Hot Definitions
  1. Mobile Wallet

    Mobile wallet is a virtual wallet that stores payment card information on a mobile device.
  2. Leverage

    1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. ...
  3. Trumponomics

    Trumponomics is a term for the economic policies of President Donald Trump.
  4. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
  5. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  6. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
Trading Center